AUSTIN – Responding to a backlash from parents, state Comptroller Susan Combs said Friday that she will seek to reverse a recent change in the state's prepaid college tuition plan that would have cost parents who canceled contracts thousands of dollars.

Combs said she will ask the managing board for the program, formerly known as the Texas Tomorrow Fund, to restore the former policy that paid earnings on canceled contracts reflecting their increased value because of tuition hikes.

For example, a parent who paid about $11,000 for a tuition contract a decade ago would be entitled to nearly three times that amount – in either tuition payments or a refund – based on current rates. That's because tuition in Texas has soared since it was deregulated by the Legislature in 2003 during a fiscal crunch.

Under the change, though, the parent would have received only what he or she originally paid.

"I have listened to the concerns of legislators and contract holders, and I am recommending any changes to the program be postponed until the Legislature convenes in 2011," the comptroller said.

Combs had made the change in part because of massive projected shortfalls. The change would have saved at least $60 million.

In addition to complaints from parents, though, dozens of lawmakers also questioned the move, and one House member asked the attorney general to rule on the legality of changing contracts already issued under the program.

"I applaud the comptroller for taking this stand and responding to our concerns," said Sen. Dan Patrick, R-Houston. "The solvency of the fund is absolutely paramount, but I believe that Texas should honor its original agreement."

Combs said her concern over the solvency of the fund – facing a projected $2.1 billion deficit – has not changed.

"My first obligation is to protect the state's assets, especially in this economic climate. The recent decision to limit refunds for canceled contracts was due to a grave concern over the solvency of the program and my commitment to fiscal responsibility," she said.

Her recommendation to rescind the change will be presented to the Texas Prepaid Higher Education Tuition Board next week. Combs chairs the panel.

If the board goes along, the Nov. 30 deadline for parents to cancel their current contracts under the old refund policy will be scrapped. In addition, the thousands of parents who have already requested or received a refund will be allowed to re-enroll without penalty.

That new policy would have dramatically reduced refunds, which now include earnings equal to the difference between the original contract price and the current value based on average tuition rates for state universities.

Parents might cancel, for instance, if their child earned a full scholarship, decided not to go to college or didn't use all the credit hours available under his or her plan.

Nearly 158,000 young Texans were enrolled in the program between 1996 and 2003, when it was closed to newcomers after the Legislature deregulated tuition, triggering an average 86 percent increase in tuition and fees at the state's 35 public universities.

The program – originally set up to lock in the future cost of a college education at today's tuition rates – has contracts with about 108,000 young Texans.

Combs said she will ask the Legislature in 2011 to work on a fix for the projected deficit, which represents the difference between the amount of money that will be in the fund and the projected tuition payments that will have to be made for students who have a contract.