March 15, 2009
This legislation would expand the existing Texas Save & Match Program for eligible beneficiaries who open a higher education savings plan (529 Plan) or purchase a prepaid tuition contract (Texas Tomorrow Fund II), thus providing an opportunity and incentive for lower and middle class families to start saving for their children’s post-secondary education.
To be eligible for the match, the beneficiary must be resident or dependent of a resident; be younger than 7 years of age; and have a household adjusted gross income that is not more than 400% of the federal poverty level (for family of 4, 400 percent of federal poverty level (FPL) is $88,200). Guidelines provided to Prepaid Higher Education Tuition Board for match contributions for each eligible dollar are:
Not more than $500 per year will be matched, for a maximum of 5 years (consecutive or non-consecutive years).