Comptroller Hegar Reminds Families: Save for Higher Education on 529 College Savings Day

“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."

Texas Insider Report: AUSTIN, Texas – Today is 529 College Savings Day, and Texas Comptroller Glenn Hegar is encouraging families to save for their children’s higher education expenses using the state’s 529 College Plans.
The plans are known as "529 plans" because they are authorized by Section 529 of the Internal Revenue Code – and Texas offers three tax-advantaged 529 plans:
 

1. the Texas College Savings Plan^® (TCSP) and
2. the LoneStar 529 Plan^® (LS529) are both College Savings Plans.
3. And the Texas Tuition Promise Fund^® (TTPF) is a prepaid college tuition plan.

The TCSP and the LS529 allow families to save for college by investing in one or more portfolios, either by enrolling in TCSP directly or in LS529 through a financial adviser. The college savings plans may be used to pay for qualified education expenses at schools nationwide and even at some foreign schools.

The college savings plans are open for enrollment year round, and Texas residency requirements apply.

TTPF helps families lock in today’s rates for all or some future undergraduate resident tuition and schoolwide required fees at any 2- or 4-year Texas public college or university, excluding medical and dental schools. TTPF newborn enrollment is available through July 31st to lock in 2023-24 prices for children younger than 1 year of age; general enrollment begins on Sept. 1st, with new contract prices for the 2024-25 academic year.

The Texas Prepaid Higher Education Tuition Board administers all three 529 plans through the Comptroller’s office.
 

• For more information about the Texas 529 plans, visit SaveNowForCollege.com, or call 800-445-GRAD (4723):
  • Select Option 3 for the Texas College Savings Plan^®,
  • Option 4 for the LoneStar 529 Plan^®, or
  • Option 5 for the Texas Tuition Promise Fund^®.

The Texas Tuition Promise Fund^® (“Plan”), and the Texas College Savings Plan^® and the LoneStar 529 Plan^® (“Savings Plans,” together with the Plan, the “Plans”) are administered by the Texas Prepaid Higher Education Tuition Board (“Board”). Orion Advisor Solutions, Inc. (“Orion”) is the manager of the Plans. The Plan is maintained by Catalis Regulatory and Compliance, LLC, who is not affiliated with Orion. The Plans and the Board do not provide legal, financial, or tax advice and you should consult a legal, financial, or tax advisor before participating. Non-residents of Texas should consider whether their home state, or the beneficiary’s home state, offers its residents any tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for participants in that state’s plan.