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IMPORTANT NOTICE
The Texas College Savings Plan is established and maintained by the Texas Prepaid Higher Education Tuition Board. The Texas Sunset Advisory Commission performs periodic reviews of most state agencies. The Commission is currently reviewing the mission and performance of the Board. For information on how to provide comments or suggestions to Sunset staff on the Board’s mission, operations or services, please click here.


Saving Strategies


Aside from a home, higher education may be the most expensive and most important purchase in a person’s lifetime.

Chinese philosopher Lao-Tzu said, “Even a journey of a thousand miles begins with a single step.” And that’s probably where you are now — looking to take that first step in what seems a daunting journey. But the important part is to get started. With a bit of careful planning, the goal of a funded college education may be attainable. In this section, we invite you to:

Start Early

Today, the average cost of a four-year undergraduate education is more than $85,000 at a public college and more than $190,000 at a private college.1

That’s a considerable amount for any family to accrue, but if you start saving early, you can potentially take advantage of the power of compounding savings and interest for a longer period of time.

In the chart, you can see how 529 plan contributions might grow if you start with $5,000 when your child is a baby and continue with $100 per month until your child turns 18.

growthof5k

This chart assumes a $5,000 lump sum investment, $100 monthly investments and 5% annual rate of return. The calculations are for illustrative purposes only, and the results are not indicative of the performance of any investments. The calculations do not reflect any plan fees or charges that may apply. If such fees or charges were taken into account, returns would have been lower. With any long-term investment, investment returns may vary. Such automatic investment plans do not assure a profit or protect against losses in declining markets.

1Source The College Board, “Trends in College Pricing,” 2017. The average yearly estimated full-time undergraduate budget for tuition and fees, room and board, and books and supplies is $22,020 for in-state public four-year institutions (on campus) and $48,170 for private non-profit four-year institutions (on campus). The estimated costs for both public and private institutions assume college matriculation at the age of 18. Please note that this is only an estimate and does not include transportation or other expenses.

Save Regularly

By choosing to make regular contributions that fit your budget, you can ensure that saving for college becomes a part of your monthly investment strategy. Soon, you may find that saving and investing become a habit, and planning for the future is easier than you thought. You can instill this discipline by setting up an automatic investing plan.1

Whether your monthly savings budget is $50 or $250, contributing a fixed amount into a 529 account could really help your savings add up over time.

The chart shows how an investment could grow over 18 years, using an automatic investment plan with regular monthly investments of $50, $100 or $250.totalcontrib

This chart assumes a net 5% annual rate of return. The calculations are for illustrative purposes only, and the results are not indicative of the performance of any investments. The calculations do not reflect any plan fees or charges that may apply. If such fees or charges were taken into account, returns would have been lower. With any long-term investment, investment returns may vary.

1Automatic investing does not assure a profit and does not protect against loss in declining markets.

Scholarships & Aid

Consider Scholarships and Aid

There are many ways to help close the gap between the cost of college and the funds you have available. First, you’ll need to educate yourself on the many ways to offset the cost of education. Consider the following:

Scholarships: A wide variety of financial scholarships are available to many deserving students.

Financial Aid: By completing a standardized Free Application for Federal Student Aid (FAFSA) application, you can find out if you qualify for financial aid. You can also learn more about federal financial aid opportunities by visiting the Federal Student Aid Information Center (FSAIC) website or the Texas Comptroller of Public Accounts website.