The Texas Tomorrow Fund fell victim to tuition deregulation and was closed to new accounts because the state couldn't keep up with rising college costs. This is now the third year for the Tuition Promise Fund, a similar pre-paid plan that allows parents to lock-in today's tuition rates. R.J. DeSilva is with the State Comptroller's Office and says universities are now taking more of the risk instead of the state.
"This is structured so that if tuition rises more than anticipated for the current valuations the university would bare more of the burden of covering the difference in tuition."
There are currently almost 18-thousand families enrolled in the Tuition Promise Fund. They have the option of buying the entire four years of college or as little as a half a semester at a time.
"Quite frankly, families may be dealing with tight budgets right now with different economic situations they may be facing, so this affords them the chance to be able to say I can't buy four years worth of tuition, but I'll look into buying a year or a semester or something smaller or two years so there's certainly that flexibility that's out there for families."
Enrollment for the current tuition rates closes at the end of February. For more information about the program, visit the Texas Tuition Promise Fund website.