Tuition Units may only be redeemed for undergraduate tuition and schoolwide required fees

Tuition Units may only be redeemed for undergraduate tuition and schoolwide required fees

No. required feesRequired fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. Please see Rollovers to Another 529 Plan for more information on how to roll over funds to a 529 college savings plan so that they may be used for graduate school.

What can I do if there are Tuition Units left over?

If you have accumulated more Tuition Units than you need to cover tuition and schoolwide required fees, required feesRequired fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. you can:

  • Change the Beneficiary of your contract to a member of Beneficiary’s family. member of Beneficiary’s familySee the Plan Description and Master Agreement for details and consult your tax advisor to determine whether such a change creates a taxable gift or other adverse tax consequences for you or your Beneficiary.
  • Transfer the Transfer Value Transfer ValueTransfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon. of unused Tuition Units to a 529 college savings plan, such as the Texas College Savings Plan ® so that the money can be used for graduate school tuition, fees, books or room and board or expenses for registered apprenticeship programs. Transfer Value is limited to the lesser of a) the costs the Tuition Units would pay to a public in-state college or university, or b) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount.
  • Request a refund request a refundFor all units held at least three years (and for contracts cancelled due to the Beneficiary’s death, disability, receipt of scholarship or admission to a U.S. Military Academy), the Purchaser will receive the Refund Value, which is an amount equal to the price you paid for the unit plus or minus adjusted net investment earnings or losses on that amount, with the earnings rate set annually by the Board at a rate that is up to 2% less than the actual net earnings, is capped at 5%, and is net of any fees due and payable. The earnings portion of a Refund is also subject to federal income taxes plus a 10% federal tax as well as any state or local taxes that may apply. Earnings may only be paid on a refund subject to the actuarial soundness of the fund. Refund Value does not include any state-provided or procured matching contributions or earnings thereon.

Reduced Refund Value does not include any state-provided or procured matching contributions or earnings thereon

For units that do not meet the three-year holding period requirement, the Purchaser will receive the Reduced Refund Value. It will be limited to the lesser of (1) the price you paid for the unit, or (2) the price you paid for the unit, plus or minus net investment earnings or losses on that amount, and is net of any fees due and payable. This means the Reduced Refund Value will not include any positive net earnings, but can be less than the purchase price if there have been periods of negative returns in the market. of unused Tuition Units. See Cancellations and Refunds for information on how refunds are calculated. Federal income taxes and an additional 10% federal tax on the earnings online loan New Jersey, as well as any state or local taxes, may apply.

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