Contracts for the Texas Tomorrow Fund, a prepaid tuition program, had clear commitments to pay refunds at current rates, but now they are reneging on that. Therefore, if your child gets a scholarship, you’ll just get back your initial investment less fees. So ten years later you can have less than you started with!
Note the comical line from the board.
“The board believes that the new refund policy is in the best interests of the plan in order to maximize the financial resources of the plan,” the board said in a letter to parents this month. The decision by the board, chaired by state Comptroller Susan Combs, is expected to save at least $60 million in refund payments.
It helps maximize your financial resources by not paying your commitments? No kidding. Only we have these pesky things called contracts, not to mention honesty and integrity, whereby you are supposed to do what you promised.
But your government can be trusted, right? They would never change the rules after the game starts, would they?