A. The board may promulgate rules in order to establish a prepaid higher education tuition program. Prior to the establishment of the program, the board will contract for a thorough feasibility study of the proposed prepaid higher education tuition program, including an actuarial analysis of the assumptions underlying the proposed program, and report to the appropriate interim committee of the legislature. The report shall include a recommendation from the board regarding whether it is feasible to proceed with the adoption of the proposed program based on the findings of the feasibility study.
B. The rules regarding the prepaid higher education tuition program shall specify at least the following:
(1) that prepaid tuition contracts, once paid, will cover all tuition and required fees of state public institutions of higher education;
(2) that payments for prepaid tuition contracts may be made either in a lump sum or in installments;
(3) that the prepaid tuition contracts shall include at least the following:
(a) provisions that allow purchasers to choose from payment plans that pay the tuition and required fees for institutions of higher education;
(b) provisions that allow for rollover of prepaid higher education tuition benefits from one plan to another and that provide that benefits may be used at any institution of higher education;
(c) penalties for termination of the contract or default on any of the contract's terms or conditions; and
(d) provisions that allow purchasers to change or switch beneficiaries;
(4) that beneficiaries must meet certain minimum eligibility requirements as determined by the board;
(5) that the board shall consider at least the following variables when setting contract prices:
(a) the amount and estimated rate of increase of tuition and fees at institutions of higher education;
(b) estimated investment returns;
(c) estimated administrative costs; and
(d) the period between the date the contract is entered into and the date the beneficiary is projected to graduate from high school;
(6) that gifts or bequests may be made to the fund, either on behalf of a beneficiary or to the fund generally;
(7) how and when institutions of higher education become eligible to participate in the program;
(8) that benefits under a prepaid tuition contract are excluded from any calculation of a beneficiary's state student financial aid eligibility; and
(9) that the board shall annually provide for audited statements and actuarial studies on the condition of the fund.
A. The board may promulgate rules in order to establish a prepaid higher education tuition program. Prior to the establishment of the program, the board will contract for a thorough feasibility study of the proposed prepaid higher education tuition program, including an actuarial analysis of the assumptions underlying the proposed program, and report to the appropriate interim committee of the legislature. The report shall include a recommendation from the board regarding whether it is feasible to proceed with the adoption of the proposed program based on the findings of the feasibility study.
B. The rules regarding the prepaid higher education tuition program shall specify at least the following:
(1) that prepaid tuition contracts, once paid, will cover all tuition and required fees of state public institutions of higher education;
(2) that payments for prepaid tuition contracts may be made either in a lump sum or in installments;
(3) that the prepaid tuition contracts shall include at least the following:
(a) provisions that allow purchasers to choose from payment plans that pay the tuition and required fees for institutions of higher education;
(b) provisions that allow for rollover of prepaid higher education tuition benefits from one plan to another and that provide that benefits may be used at any institution of higher education;
(c) penalties for termination of the contract or default on any of the contract's terms or conditions; and
(d) provisions that allow purchasers to change or switch beneficiaries;
(4) that beneficiaries must meet certain minimum eligibility requirements as determined by the board;
(5) that the board shall consider at least the following variables when setting contract prices:
(a) the amount and estimated rate of increase of tuition and fees at institutions of higher education;
(b) estimated investment returns;
(c) estimated administrative costs; and
(d) the period between the date the contract is entered into and the date the beneficiary is projected to graduate from high school;
(6) that gifts or bequests may be made to the fund, either on behalf of a beneficiary or to the fund generally;
(7) how and when institutions of higher education become eligible to participate in the program;
(8) that benefits under a prepaid tuition contract are excluded from any calculation of a beneficiary's state student financial aid eligibility; and
(9) that the board shall annually provide for audited statements and actuarial studies on the condition of the fund.
A. The board may promulgate rules in order to establish a prepaid higher education tuition program. Prior to the establishment of the program, the board will contract for a thorough feasibility study of the proposed prepaid higher education tuition program, including an actuarial analysis of the assumptions underlying the proposed program, and report to the appropriate interim committee of the legislature. The report shall include a recommendation from the board regarding whether it is feasible to proceed with the adoption of the proposed program based on the findings of the feasibility study.
B. The rules regarding the prepaid higher education tuition program shall specify at least the following:
(1) that prepaid tuition contracts, once paid, will cover all tuition and required fees of state public institutions of higher education;
(2) that payments for prepaid tuition contracts may be made either in a lump sum or in installments;
(3) that the prepaid tuition contracts shall include at least the following:
(a) provisions that allow purchasers to choose from payment plans that pay the tuition and required fees for institutions of higher education;
(b) provisions that allow for rollover of prepaid higher education tuition benefits from one plan to another and that provide that benefits may be used at any institution of higher education;
(c) penalties for termination of the contract or default on any of the contract's terms or conditions; and
(d) provisions that allow purchasers to change or switch beneficiaries;
(4) that beneficiaries must meet certain minimum eligibility requirements as determined by the board;
(5) that the board shall consider at least the following variables when setting contract prices:
(a) the amount and estimated rate of increase of tuition and fees at institutions of higher education;
(b) estimated investment returns;
(c) estimated administrative costs; and
(d) the period between the date the contract is entered into and the date the beneficiary is projected to graduate from high school;
(6) that gifts or bequests may be made to the fund, either on behalf of a beneficiary or to the fund generally;
(7) how and when institutions of higher education become eligible to participate in the program;
(8) that benefits under a prepaid tuition contract are excluded from any calculation of a beneficiary's state student financial aid eligibility; and
(9) that the board shall annually provide for audited statements and actuarial studies on the condition of the fund.
