From Representative Ken Paxton
Several of my constituents recently contacted me regarding the Texas Prepaid Higher Education Tuition Boards decision to change its refund policy for individuals who are invested in the Texas Guaranteed Tuition Plan and choose to cancel a contract or request a refund.
I am pleased to report that the Board met today (November 5 2009) and voted to revert to the former policy for refunding unused tuition hours when a Plan contract is cancelled or a refund is requested. This means that cancelled contracts will now be handled the same way they were prior to the recent refund rule change that eliminated tuition-based earnings on refunds for unused hours.
Last legislative session Texas Comptroller Susan Combs expressed concern regarding the solvency of the Texas Guaranteed Tuition Plan. As a result the Board decided to limit refunds for cancelled contracts. Families were told to decide by November 30 2009 whether to cancel their contracts in order to receive tuition-based earnings or to continue their contract even if they were uncertain about their future plans. However as a result of todays decision families are no longer required to make this difficult decision.
I applaud the Boards action as I believe that Texans and their investments should remain the first priority of the Texas Guaranteed Plan. The Boards decision to reinstitute the terms of the Master Agreement will undoubtedly restore the trust of Texans. Additionally I appreciate Comptroller Combs listening to the concerns of legislators and contract-holders and urging the Board to postpone any changes until after the Legislature reconvenes in 2011.
For more information regarding the Texas Guaranteed Tuition Plan or the Boards recent actions please visit
http://www.tgtp.org/.
