Using Your Texas 529 College Savings Plan Benefits
You’ve enrolled or plan to enroll in a Texas 529 plan, so now what? How will you or your child actually withdraw the funds? Get an idea for how each Texas 529 plan type works for using your funds and access helpful links on each plan’s Web site.
Prepaid Tuition Plans
When the student graduates from high school and is accepted at a college or university, the prepaid contract(s) becomes redeemable. In the spring of their senior year in high school, students are sent a student identification card and a handbook that describes how to use contract benefits. Students should contact their school’s accounting or billing office before they pay their tuition to see if the school has a specific process for applying prepaid tuition funds. Otherwise, they can refer to the plan handbook.
Texas Guaranteed Tuition Plan:
Texas Tuition Promise Fund:
On the How It Works page of the Texas Tuition Promise Fund Web site, scroll down to Using Your Tuition Units
529 Savings Plans
Once the student enrolls at an eligible education institution, funds from the Texas 529 College Savings Plan or LoneStar 529 Plan may be withdrawn to pay for “qualified” higher education expenses. Specific information about withdrawals can be found on each plan's Web site.
Texas 529 College Savings Plan:
See withdrawal information on page 13 (page 22 of the pdf ) of the Plan Description and Trust Savings Agreement on the Texas 529 College Savings Plan Web site.
LoneStar 529 Savings Plan:
See withdrawal information on page 21 (page 35 of the pdf ) of the Plan Description and Trust Savings Agreement on the LoneStar 529 College Savings Plan Web site.