The plan allows parents to start paying undergraduate tuition and mandatory fees for their children's future education.
The plan is a reincarnation of the Texas Tomorrow Fund, which has been closed to new participants since 2003, when lawmakers deregulated college tuition and rates increased sharply.
"You can prepay for a four-year degree, or you can prepay in small bites -- just for a few classes or semesters," Combs said. "And best of all, you don't have to worry about future tuition increases because you lock in current prices."
Parents could choose to buy credits at one of three price levels, ranging from the highest-cost, four-year-universities, like the University of Texas at Austin, to a two-year community college.
At this year's rates, for instance, a parent of a newborn could pay $60.36 a month to buy a year of tuition and fees at an average four-year university. The parents of a 7-year-old would pay $81.53 a month for future tuition and fees.
Enrollment runs through Feb. 28 of next year, but the first payments would be due May 1.
If a child enrolled in the plan chooses to go to a private or out-of-state school, the amount invested will be returned.
"Regardless of a family's income level, the children of parents that start saving early are more likely to have higher academic achievement the complete four years of school," Combs said.
"That's why I'm so excited about this program."
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