Current through Register Vol. 51, No. 6, December 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;
(d) Credit card approved by the
office;
(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