Current through Register Vol. 51, No. 3, September 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:
1. The application;
2. The prepaid tuition contract terms and
conditions of payment and purchase; and
3. The master agreement.
(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)
