Illinois Administrative Code
Title 23 - EDUCATION AND CULTURAL RESOURCES
Part 2775 - ILLINOIS PREPAID TUITION PROGRAM
Section 2775.50 - Contract Terms and Conditions
Universal Citation: 23 IL Admin Code § 2775.50
Current through Register Vol. 48, No. 52, December 27, 2024
a) Contract Types
The program shall offer purchasers at least two different types of contracts: a public university plan and a community college plan. Additional contract plans may be offered. All contract types shall cover registration fees.
1) The public university plan
specifies that no more than 9 terms, or 135 credit hours, at an Illinois public
university may be purchased for the benefit of a qualified beneficiary.
Applicants may choose to purchase as little as one term, or 15 credit hours, at
a time.
2) The community college
plan specifies that no more than 4 terms, or 60 credit hours, at an Illinois
community college may be purchased for the benefit of a qualified beneficiary.
Applicants may choose to purchase as little as one term, or 15 credit hours, at
a time.
3) No more than an
aggregate of 135 credit hours of benefits may be purchased on behalf of any
qualified beneficiary.
b) Contract Benefits
1) The registration fees contracted for by
the purchaser shall be paid directly to the institution at the time of
enrollment of the qualified beneficiary. The credit hours purchased may be used
during any term of postsecondary undergraduate enrollment. A social security
number or taxpayer identification number must be on file prior to payment of
benefits.
2) No contract benefits
may be received by a qualified beneficiary of an Illinois prepaid tuition
contract earlier than three years from the due date of the first contract
payment.
3) No interest in all or
any portion of a contract may be used as security for a loan.
c) Contract Requirements
1) Purchasers must name a qualified
beneficiary in the application, except as provided in the Disclosure Statement
and Master Agreement. Only one qualified beneficiary is allowed per contract. A
separate accounting will be provided for each designated beneficiary.
2) In the event duplicate applications for
the same qualified beneficiary are processed, the application processed first
shall be deemed valid and the remaining application or applications shall be
deemed valid, if and only if, they provide for registration fees not already
covered by previous applications.
3) The purchaser does not have to designate
the postsecondary institution that the qualified beneficiary is expected to
attend.
4) The benefits of a
contract may be used in advance of the selected matriculation date indicated in
the application with no penalty or additional cost. However, to utilize a
contract prior to the selected matriculation date, the purchaser must pay the
contract in full before changing the matriculation date.
5) The qualified beneficiary must enroll in
an eligible institution and request disbursement of any benefits within ten
years after the projected enrollment date. This ten year limitation may be
extended at the Commission's sole discretion upon purchaser's application for
extension to the Commission. Any time spent by the qualified beneficiary in
active military service shall not count as part of the time period for
receiving contract benefits under all contract plans.
6) The purchaser and qualified beneficiary
are prohibited from directing the investment of any contributions to the
program.
d) Change of Purchaser and Change of Qualified Beneficiary
1) The purchaser of a contract may be changed
upon written request of the original purchaser and the new purchaser. The new
purchaser must meet the requirements of a qualified purchaser contained in the
master agreement other than the residency requirement. (See Section
2775.30(a).)
2) Upon written request, contract benefits
may be transferred by the purchaser to a new qualified beneficiary prior to
actual use. The new qualified beneficiary must be a member of the family of the
original qualified beneficiary but need not meet the residency requirement.
(See Section
2775.30(a).)
e) Benefit Portability and Conversion Between Illinois Public Universities and Illinois Community Colleges
1) Public university plan benefits may be
converted for usage at community colleges and community college plan benefits
may be converted for usage at public universities.
2) Benefits shall be converted by referencing
the relative current average mean-weighted credit hour value of registration
fees purchased under the contract. The benefit conversions shall be authorized
on a term-by-term basis and no fee shall be assessed for conversion of benefits
among in-State public institutions.
f) Benefit Portability and Conversion to Nonpublic Institutions of Higher Education
1)
Public university plan and community college plan contract benefits may be
converted for payment of registration fees at nonpublic institutions of higher
education.
2) Benefits shall be
converted by referencing the current average mean-weighted credit hour value of
registration fees purchased under the contract. Each term, the Commission shall
transfer this amount to the nonpublic institution of higher education on behalf
of the qualified beneficiary.
Disclaimer: These regulations may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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