Texas offers refunds at the hourly rate the program pays to the school, according to the Texas Guaranteed Tuition Plan website.
The hourly rate for state universities' maximum reimbursement in Texas is $273.15 per credit hour. If a student earned a scholarship that paid for a 12-credit semester's worth of tuition, the refund would be almost $3,300.
However, the family could decide to save those hours for a future semester. Since tuition generally rises, using prepaid plans in later years of schooling can be more valuable, Farmer says.
Parents should always check the individual rules of the prepaid tuition plan they chose for refund options, but more importantly, should understand how they can use the plan for a variety of different schools, experts say.
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