Current through Register Vol. 50, No. 9, September 20, 2024
A. Request
for Disbursement
1. For each term the account
owner intends to fund the beneficiary's qualified higher education expenses,
the account owner shall submit a request for disbursement.
2. The request for disbursement must include:
a. the START account number;
b. the account owner's name, address, and
signature (may be electronic);
c.
the beneficiary's name and address;
d. the amount to be disbursed and to
whom;
e. the name and address of
the eligible educational institution.
3. In the event funds are invested in more
than one investment option, the disbursement shall be made proportionally from
each investment option in the account.
4. If there is more than one account with the
same beneficiary, each account owner requesting a disbursement must complete a
request for disbursement and the disbursements shall be made from each account,
in turn, in the order the disbursement requests were received.
5. Disbursements from all accounts with the
same beneficiary shall not exceed the qualified higher education expenses of
the beneficiary for the school attended.
6. Disbursements may be made to the eligible
educational institution, account owner, and/or beneficiary. If all of the
disbursement is made to the account owner and/or the beneficiary and LOSFA
determines that the beneficiary is not enrolled in an eligible educational
institution during the semester or term for which the disbursement was
intended, LOSFA shall notify the account owner that the disbursement will
constitute a refund for state and federal income tax purposes unless returned
to the START account. If the disbursement is not returned to the account within
60 days of the original notice, LOSFA shall recover the amount of the EEs and
interest thereon included in the disbursement from any principal and interest
remaining in the account, and, in the authoritys sole discretion, may refund
any balance remaining thereafter and close the account.
7. Disbursements from investment options with
variable earnings shall be assigned a trade date of one business day after the
business day of receipt of the transfer request.
B. Rate of Expenditure
1. As authorized by the account owner, the
amount to be disbursed from an account shall be drawn from deposits (including
earnings on deposits) and EEs (including earnings on EEs) in the same ratio as
these funds bear to the total value of the account as of the date of the
disbursement.
2. The account owner
may not withdraw an amount in excess of the beneficiary's qualified higher
education expenses for a specific term of enrollment or the value of the
account, whichever is less.
C. Payments to Eligible Educational
Institutions
1. Upon the beneficiary's
enrollment and the institution's receipt of a START disbursement, the
institution may credit the student's account. Should the amount received exceed
the amount owed to the institution, the institution shall disburse the balance
to the beneficiary, unless the beneficiary directs otherwise.
2. If the designated beneficiary of an ESA
account enrolls, but fails to attend or withdraws from the institution prior to
the end of the educational term and disbursements from the ESA were made to the
eligible educational institution to pay all or part of his qualified higher
education expenses for that educational term, an institutional refund to the
ESA may be required.
3. If any
refund is due the beneficiary from the eligible educational institution, a pro
rata share of any refund of qualified higher education expenses equal to that
portion of the qualified higher education expenses paid by disbursements from
the ESA shall be made by the eligible educational institution to the
LATTA.
4. The LATTA will credit any
refunded amount to the appropriate ESA.
D. Advance Enrollment. A beneficiary may
enroll in an eligible educational institution prior to his scheduled date of
first-enrollment (see §107) and utilize ESA funds; however, a beneficiary may
not utilize funds from an ESA prior to one year from the date the beneficiary
made the first deposit opening the account.
E. Part-Time Attendance and Nonconsecutive
Enrollment. A beneficiary may utilize funds in an ESA for enrollments which are
nonconsecutive and for part-time attendance at an eligible educational
institution, including enrollment in college classes while still in high
school. Room and board is only a qualified higher education expense for
students who are enrolled at least half time; however, room and board is not a
qualified higher education expense for students who are enrolled in college
classes while still in high school.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
17:3091-3099.2.
