Texas advance tuition plan to limit refunds

AUSTIN, Texas (AP) _ Parents who invested in their children's future through the Texas prepaid college tuition plan will not get extra money if they cancel the deal.

The deficit-strapped former Texas Tomorrow Fund needs the money. The Dallas Morning News reported Thursday that the Texas Guaranteed Tuition Plan has decided to cancel its policy that pays sometimes as much as 200 percent in returns.

The prepaid tuition plan has adopted a policy that will restrict future refunds to the actual amount paid by parents or others who purchased college slots, minus administrative fees.

The updated policy takes effect Nov. 1. Currently, refunds include the initial amount paid and the difference between the original contract price and a current value based on average tuition rates for state colleges and universities.