TEXAS TUITION PROMISE FUND

What TEXAS TUITION PROMISE FUND does

The Texas Tuition Promise Fund is a state-sponsored Section 529 Prepaid Tuition Plan administered by the Texas Prepaid Higher Education Tuition Board, a body operating under the Texas Comptroller of Public Accounts. It enables Texas families to lock in current undergraduate resident tuition and required fee rates at Texas public colleges and universities by purchasing Tuition Units across three price tiers — Type I (most expensive four-year college, $165.11/unit for 2025-2026), Type II (weighted average of all four-year colleges, $115.89/unit), and Type III (weighted average of two-year colleges, $32.15/unit). Purchasers can choose among Lump Sum (minimum 25 units), Installment (with a 6% finance charge over 5 or 10 years or until projected high school graduation), and Pay-As-You-Go ($15 minimum) payment options, subject to a $25 one-time administrative fee and a $500,000 beneficiary contribution cap. The plan is statutorily backed: Texas law requires all two-year and four-year Texas public colleges and universities (excluding medical and dental schools) to accept Tuition Units as payment, exempts account assets from creditor claims, and excludes them from Texas state-funded financial aid eligibility calculations.

The go-to-market is primarily direct-to-consumer via the texastuitionpromisefund.com website and online enrollment portal, augmented by employer payroll deduction partnerships, financial advisor referrals (with the companion advisor-sold LoneStar 529 Plan), and a Texas Comptroller-led outreach team running monthly webinars and virtual presentations. Plan administration is outsourced to Orion Advisor Solutions (plan manager), NorthStar Financial Service Group (professional investment manager), and Catalis Regulatory and Compliance (plan maintenance), with the plan manager operations center located in Jacksonville, FL. Plan assets are invested as directed by the Board. The program operates exclusively within Texas, restricts beneficiaries to Texas residents (or purchasers who are Texas-resident parents), and runs an annual enrollment window from September 1 through February 28, extended through July 31 for newborns.

Customers include Texas-resident parents, grandparents (with annual gift-tax exclusion-eligible contributions up to $19,000/beneficiary/year), Texas employers offering payroll deduction benefits, and charitable organizations (notably the Texas Match the Promise Foundation, which awards matching scholarships to grades 3–9 enrolled students). The plan accepts rollovers to/from companion Texas 529 vehicles (Texas College Savings Plan, LoneStar 529 Plan) and since January 1, 2024 supports rollovers to Roth IRAs under the SECURE 2.0 Act, as well as ABLE account rollovers. The plan is a government public-benefit program with no equity funding rounds and is not a commercially traded entity.

Name

TEXAS TUITION PROMISE FUND

Legal name

Texas Tuition Promise Fund

Website

https://texastuitionpromisefund.com

Company type

Private

Founded year

2008

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

The Texas Tuition Promise Fund is a state-administered Section 529 prepaid tuition plan that lets Texas families lock in current undergraduate tuition rates at Texas public colleges by purchasing Tuition Units across three price tiers, distributed via a consumer website, employer payroll deduction, and financial advisor channels.

Ownership category

akta.pro rank

Product category

Prepaid Tuition Plans

NAICS

Educational Support Services (61171), Educational Support Services (611710)

SIC

Investment Advice (6282)

akta.pro primary industry

Education Funding Planning (College/529) (FSAEAAAF)

akta.pro secondary industry

Financial Aid Administration & Packaging (EDALAJAA)

Keywords

• Prepaid tuition plans
• 529 college savings
• Tuition prepayment
• Education savings plans
• State tuition benefits

Headquarters

HQ city

Jacksonville

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Prepaid Tuition Unit Sales: Families purchase Tuition Units at locked-in current prices. Units are sold in three pricing tiers (Type I, II, III) under three payment plans: Lump Sum (25+ units at current price), Installment (locked price plus 6% finance charge over 5 or 10 years or until projected high school graduation), and Pay-As-You-Go (flexible purchases at prevailing prices with $15 minimum). A one-time $25 administrative fee is charged per unique purchaser/beneficiary combination.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels8 records

Core offering

The Texas Tuition Promise Fund is a Section 529 prepaid tuition plan administered by the Texas Prepaid Higher Education Tuition Board. Texas families purchase Tuition Units (Type I, II, or III) at locked-in current prices to prepay undergraduate resident tuition and required fees at Texas public colleges and universities. Three payment options are available: Lump Sum (25+ units), Installment (5–10 year contracts with 6% finance charge), and Pay-As-You-Go (flexible minimum $15 contributions).

Product overview

The Texas Tuition Promise Fund is a single Section 529 Prepaid Tuition Plan offering three types of Tuition Units (Type I, II, III) at different price tiers, purchasable through three payment options (Lump Sum, Installment, Pay-As-You-Go). It is closely integrated with two related Texas 529 savings plans (Texas College Savings Plan and LoneStar 529 Plan) for covering expenses not included in the prepaid plan such as room, board, and graduate school. The program includes a complimentary Tuition Planning Calculator tool and partners with the Match the Promise Foundation for scholarship support.

Differentiator

Problem solved

Functional benefit

Products and services

• Texas Tuition Promise Fund A Section 529 Prepaid Tuition Plan allowing Texas families to lock in current undergraduate resident tuition and required fees at Texas public colleges and universities (excluding medical and dental institutions). Account holders purchase Tuition Units (Type I, II, III) representing fixed amounts of prepaid tuition.
• Texas College Savings Plan Texas direct-sold 529 college savings plan for flexible saving toward qualified higher education expenses including tuition, fees, room and board, books, and registered apprenticeship programs. Used alongside the prepaid plan to cover costs not included in the prepaid plan.
• LoneStar 529 Plan Texas advisor-sold 529 college savings plan for those seeking professional investment guidance. Can be used for graduate tuition, room and board, books, lab fees, and other costs not covered by the prepaid plan.
• Match the Promise Foundation Scholarships Matching scholarship program awarding tuition grants to students in grades 3-9 who are enrolled in the Texas Tuition Promise Fund. Matching scholarship tuition units are applied toward tuition at Texas public colleges and universities.

Quantifiable outcome

• Locking in current tuition rates can avoid significant future cost increases — a hypothetical Type I unit purchase at ~$55,000 could cost $90,000 in 10 years at a 5% annual tuition increase, representing $35,000 in potential savings
• +2 more outcomes

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Seven partnerships are on record, tiered core and minor.

• Texas Prepaid Higher Education Tuition BoardcoreOthersThe Texas Prepaid Higher Education Tuition Board, part of the Texas Comptroller of Public Accounts, is the governing body that administers the Texas Tuition Promise Fund. The Board sets policies, enrollment periods, tuition unit prices, and oversees the plan manager.
• Orion Advisor Solutions, Inc.coreTechnology or IntegrationOrion Advisor Solutions, Inc. serves as the plan manager (professional investment manager) that administers the Plan and invests the assets of the Plan as directed by the Board. The plan manager also maintains the online account access portal and processes transactions.
• NorthStar Financial Service Group, LLCcoreTechnology or IntegrationNorthStar Financial Service Group, LLC is identified in the Glossary as the Plan Manager — the professional investment manager that administers the Plan and invests the assets as directed by the Board. This appears to be the parent entity of the plan management infrastructure.
• Texas Match the Promise FoundationcoreStrategic or Co-development PartnerThe Texas Match the Promise Foundation awards matching scholarships and tuition grants to students in grades 3–9 who are enrolled in the Texas Tuition Promise Fund. The foundation encourages savings by supplementing family contributions. Application period is Sept 1–Dec 31 annually. Eligible students can receive matching scholarship tuition units that are applied toward tuition at Texas public colleges and universities.
• Texas Public Colleges and UniversitiescoreOthersTexas law requires all Texas two-year and four-year public colleges and universities (excluding medical and dental institutions) to accept Texas Tuition Promise Fund Tuition Units as payment for tuition and schoolwide required fees. This is the foundational partnership that enables the plan's core value proposition.
• Texas College Savings PlanminorGTM or Marketing PartnerThe Texas College Savings Plan (direct-sold) and LoneStar 529 Plan (advisor-sold) are the companion 529 college savings plans administered by the state of Texas. They can be used alongside the Texas Tuition Promise Fund to cover expenses not included in the prepaid plan (room and board, graduate school, books, lab fees, etc.), and unused Texas Tuition Promise Fund units can be rolled over to these savings plans.
• LoneStar 529 PlanminorGTM or Marketing PartnerThe LoneStar 529 Plan is the advisor-sold companion college savings plan to the Texas Tuition Promise Fund, providing a full suite of Texas 529 options for families who prefer financial advisor guidance. Unused Texas Tuition Promise Fund units can be rolled over to the LoneStar 529 Plan.

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Regional players

• ScholarShare 529 (California): California's 529 college savings plan, one of the largest state 529 programs by AUM. Comparable as a large-state, state-sponsored 529 product serving in-state families, but a savings-plan structure rather than prepaid. Useful comparable for AUM scale and state-administered distribution approach.
• New York 529 College Savings Program: New York's direct-sold 529 college savings plan. Comparable as a large-state 529 product targeting in-state families saving for higher education, but operating in a different geography and offering an investment-based savings structure rather than prepaid tuition units.
• Massachusetts U.Fund College Investing Plan: Massachusetts' 529 college savings plan (note: Massachusetts does not have an active prepaid plan). Operated by Fidelity and serving Massachusetts families, it competes for the same college-savings wallet share as Texas Tuition Promise Fund but in a different state and via an investment-based savings (rather than prepaid) structure.
• Virginia Invest 529: Virginia's 529 college savings plan. Comparable as a state-sponsored 529 program marketed to in-state families, with a similar tuition-inflation-hedge narrative. Virginia Invest is savings-based, not prepaid, but competes for the same college-funding wallet in a neighboring/adjacent regional market.
• Bright Start 529 (Illinois): Illinois' 529 college savings plan, succeeding the now-closed Illinois Prepaid Tuition Program. Comparable as a state 529 product in the same broad category, and particularly relevant given that Illinois' prepaid plan closure illustrates the secular decline risk facing Texas Tuition Promise Fund's prepaid structure.

Direct peers

• Florida Prepaid College Plan: The largest U.S. state-sponsored 529 prepaid tuition plan, operated by the Florida Prepaid College Board. Directly comparable to Texas Tuition Promise Fund in structure (prepaid tuition units at state public colleges/universities), target customer (in-state families), and statutory acceptance guarantee — differing primarily in state, scale, and plan-specific tiering.
• Private College 529 Plan: A national 529 prepaid tuition plan run by a consortium of private colleges and universities. Directly comparable as another prepaid (rather than savings) 529 plan, though the asset base is private institutions rather than a single state's public system. Closest analog to Texas Tuition Promise Fund outside the state prepaid universe.
• Texas College Savings Plan: The companion direct-sold Texas 529 college savings plan administered by the same Texas Comptroller. Comparable as a 529 product marketed to the same Texas families, with overlapping distribution and explicit rollover mechanics with the Tuition Promise Fund. Represents the closest substitute offering within the same family.
• LoneStar 529 Plan: The advisor-sold companion Texas 529 college savings plan, also administered by the Texas Comptroller. Comparable in target audience (Texas families saving for higher education) and explicitly partnered with the Tuition Promise Fund for rollovers and complementary coverage of room/board, graduate, and out-of-state expenses.
• Michigan Education Trust (MET): Michigan's state-sponsored 529 prepaid tuition plan, administered by the Michigan Department of Treasury. Directly comparable as another state-level prepaid tuition program serving in-state families with a similar statutory acceptance guarantee at Michigan public colleges and universities.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights6 records

Customer concentration

• Xtwitter.com/txcomptroller
• YouTubeyoutube.com/user/txcomptroller
• Facebookfacebook.com/txcomptroller

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about TEXAS TUITION PROMISE FUND