Current through Register Vol. 51, No. 6, December 1, 2024
RELATES TO: KRS 164A.700, 164A.705, 164A.707, 164A.709
NECESSITY, FUNCTION, AND CONFORMITY: KRS 164A.704(1) requires
the board to promulgate administrative regulations to implement KRS 164A.700 to
164A.709. KRS 164A.704(6) provides that the board shall develop requirements,
procedures, and guidelines regarding prepaid tuition contracts. This
administrative regulation establishes the procedure for applying for a prepaid
tuition contract.
Section 1.
Application.
(1) A purchaser desiring to enter
into a prepaid tuition contract shall submit a completed "Application for
Enrollment" with the application fee required by 11 KAR 17:100 to the office
during the application period. Only one (1) purchaser per prepaid tuition
contract shall be allowed.
(2)
After acceptance of the application and application fee by the office, the
purchaser shall receive a prepaid tuition contract terms and conditions of
payment and purchase.
(3)
(a) The application shall become part of the
prepaid tuition contract which shall be comprised of:
2. The prepaid tuition contract terms and
conditions of payment and purchase; and
(b) The prepaid tuition contract shall become
valid upon receipt by the office of:
1. The
first installment payment due under the payment schedule; or
2. The one (1) time lump sum payment
representing the full purchase price of the prepaid tuition contract.
(c) The prepaid tuition contract
shall include the following terms:
1. The
specific amount and number of payments required under the tuition plan elected
by the purchaser;
2. The specific
terms under which the purchaser shall make payments to the fund, including the
dates upon which each payment is due;
3. Consequences of payment default by the
purchaser;
4. The name and
enrollment date of the beneficiary, except in the case of a gift as described
in KRS 164A.707(6) and 164A.704(10);
5. The terms under which an amendment to a
prepaid tuition contract may be made;
6. The specific tuition plan selected by the
purchaser;
7. The terms under which
the office is obligated to pay tuition from the fund under a prepaid tuition
contract; and
8. Any other term
deemed appropriate by the board.
Section 2. Proof of Residency and Statement
of Intent. In submitting an application, the purchaser shall demonstrate that
the beneficiary of the prepaid tuition contract is a qualified beneficiary. The
purchaser shall submit the following to the office to establish that the
beneficiary is a qualified beneficiary:
(1)
If the beneficiary is a Kentucky resident, a signed and sworn statement from
the purchaser certifying that the beneficiary is a Kentucky resident;
or
(2) If the beneficiary is not a
Kentucky resident, a signed and sworn statement from the purchaser that states
that at the time of purchase of the prepaid tuition contract, the beneficiary
intends to attend an eligible educational institution in Kentucky.
Section 3. Incorporation by
Reference.
(1) "Application for Enrollment",
August 2004, is incorporated by reference.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Kentucky Higher
Education Assistance Authority, 100 Airport Road, Frankfort, Kentucky 40601,
Monday through Friday, 8 a.m. to 4:30 p.m
STATUTORY AUTHORITY: KRS 164A.704(1), (6)