Comptroller Glenn Hegar and his wife Dara Hegar started planning for their children’s futures early, and they encourage Texas families to do the same.
Putting money away for your children’s college funds while paying everyday expenses can be difficult for families, as there are so many competing needs. That rings true for me. Prior to having children, my wife and I made a commitment to start each of them with a 529 college savings plan when they were born. We had three kids, so we started small. The key is, we started.
This month is an especially good time to start, because May 29 is National 529 College Savings Day. And as chair of the Texas Prepaid Higher Education Tuition Board, I am pleased that Texas offers several flexible options to help Texans save for education. Our college savings plans are open for enrollment year-round, and participants choose how they want to invest their funds. Texas offers the Texas College Savings Plan®, which allows individuals to enroll directly online, and the LoneStar 529 Plan®, in which individuals open an account through their financial advisor.
In addition, the Texas Tuition Promise Fund® is a prepaid tuition plan that allows participants to enter into a contract with the state to prepay future undergraduate tuition costs at Texas public colleges and universities, excluding medical and dental schools, at today’s prices. The transfer value of the plan can also be used for Texas public medical and dental schools, out-of-state colleges and universities, Texas private colleges and universities, career schools, and apprenticeship programs. The plan is currently open for newborn enrollment — children under age 1 on the date of enrollment — through July and will reopen for general enrollment on Sept. 1. The plan offers payment options to fit almost any budget.
We’ve been able to help more than 260,000 Texans prepare for those future education costs, with current assets under management totaling $2.5 billion. That’s a big deal, even by Texas standards. The fact is, the value of obtaining a college education is even greater. A person’s earning power increases with a degree beyond high school, and that gives broader options for that person and future generations. People who limit or avoid debt in getting their education are better able to take full advantage of that higher earning potential. According to the College Board, the average cost of one undergraduate academic year at a public four-year college in 2023-24 was $11,260 for in-state tuition; the average tuition cost for one academic year at a private college was $41,540. This is why starting a college savings plan early is crucial. Educational opportunities and investments go hand in hand, so I invite you to see what Texas has to offer, and I encourage families to start saving for tomorrow.
Editor’s Note: Transfer value is limited to the lesser of (1) the costs the tuition unit would cover at a Texas public college or university, or (2) the original purchase price of the tuition unit plus or minus the plan’s net investment earnings or losses on that amount.
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