Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS 164A.704,
164A.705,
164A.707
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. 2003 Ky. Acts ch. 156, Part IX, Section 46, and EO
2003-652 transferred the governance and administration of the Prepaid Tuition
Program from the Department of Treasury to the Kentucky Higher Education
Assistance Authority. This administrative regulation establishes the
requirements for prepaid tuition contract prices, payments, and default.
Section 1. Prepaid Tuition Contract Prices.
(1) The board shall determine all tuition
plans available for the purchase of prepaid tuition under a prepaid tuition
contract.
(2) The prices for all
tuition plans available for the purchase under a prepaid tuition contract shall
be determined for each application period by the board.
(3) The purchase price determined by the
board shall be expressed in installments in accordance with the payment
schedule set by the office or in a lump sum, one (1) time payment representing
the full purchase price of the prepaid tuition contract.
Section 2. Prepaid Tuition Contract Payments.
(1) All payments due under a prepaid tuition
contract shall be paid in cash in one (1) of the following forms:
(a) Automatic clearinghouse checks;
(b) Payroll deduction, if the payroll
deduction plan has been approved by the office;
(c) Coupon books;
(d) Credit card approved by the
office;
(e) Personal check;
or
(f) Electronic internet
debit.
(2) A purchaser
may request a change in the payment schedule by written request to the office.
The request shall be accompanied by a change in payment schedule fee as
required by
11 KAR
17:100. The request shall be subject to approval by
the office based on the type of plan selected and its corresponding payment
schedule.
(3) A purchaser may
prepay any remaining payments due under his payment schedule at any time
without penalty.
(4) A purchaser
shall receive an annual statement showing a record of payments to the fund, the
amount still due from the purchaser under the payment schedule, and any amounts
paid by the fund under the prepaid tuition contract.
(5) Subject to proper payment in accordance
with subsection (1) of this section, a purchaser may purchase a prepaid tuition
contract with funds representing custodial property under the Kentucky Uniform
Transfer to Minors Act,
KRS 385.012 to
385.252, or another
equivalent uniform transfer of gifts to minors act of another
state.
Section 3.
Default.
(1) Failure to make timely payments
in accordance with the payment schedule shall constitute default by the
purchaser and assessment of a late payment fee as required by
11 KAR
17:100. A purchaser shall be notified in writing of
the default and the assessment of the late payment fee.
(2) If the payment of the late payment fee
and all delinquent amounts due under the payment schedule is not received by
the office by the date set in the notice of default, the office shall
accordingly reduce the value of the prepaid tuition account.
(3) If a prepaid tuition contract continues
in default for more than 210 days, the board shall terminate the prepaid
tuition contract and refund the contributions, subject to
11 KAR
17:090, Section 1(3) and (4).
STATUTORY AUTHORITY:
KRS 164A.704(1),
(6), 2003 Ky. Acts ch. 156, Part IX, Sec. 46,
EO 2003-652
