Texas Tomorrow Fund Change on Horizon

Bill Hall, Edward Jones
Bill Hall, Edward Jones
Dianna Gheer, WTAMU's Bursor
Dianna Gheer, WTAMU's Bursor

by: Kristen Guilfoos
NewsChannel 10

Amarillo, Texas - A change in Texas pre-paid tuition program is on the horizon.

These Texas Tomorrow Fund changes are all about the folks whose children are on the fence about where to go to school.

If you've paid into the Texas Tomorrow fund, and you're sure your child will go to college in-state, then these changes most likely will not affect you.

Since it's start back in 1996, the Texas Tomorrow Fund has given parents the chance to pre-pay for tomorrow's Texas college tuition at today's rates.

Edward Jones Financial's Bill Hall says, "If you decided you didn't want to use the money for college then they would give you your money back plus a return that was equal to what tuition costs had increased."

But, starting at the end of the month, that interest becomes a thing of the past. "If you wait until November the 30th, you get only what you put in less a $36 administration fee." And that's leaving parents with lots of questions.

WTAMU's Bursor Dianna Gheer says, "Whether they should withdraw their money from the Texas Tomorrow Fund or whether it would be better to leave it in there."

We set out to find some answers.

Hall says, "So if you have got a child that you don't think is going to go to school in Texas or is not going to go to college or maybe has scholarships to pay their way through college it might be an ideal time to look at withdrawing your money because you will get some return on it."

Hall adds the decision needs to be made on a child by child basis, because everyone's situation is different. But, in most cases, it makes sense to stay in the fund if you're pretty sure your child will go to school in-state because your contribution pays for itself several times over.

As it stands now, that November 30th deadline is set in stone, but Texas Comptroller Susan Combs hopes to change that.

After taking a lot of heat from legislators and parents, she's recommending the board keep Texas Tomorrow as is, complete with interest payments.

She expects to meet with the board sometime next week.

These Texas Tomorrow changes are in hopes of decreasing the state's budget shortfall.