11 KAR 17:070. Using prepaid tuition

contract benefits.

 

      RELATES TO: KRS 164A.705, 164A.709

      STATUTORY AUTHORITY: KRS 164A.704(1),

(6), 2003 Ky. Acts ch. 156, Part IX, Sec. 46, EO 2003-652

      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 procedure and guidelines

for using prepaid tuition contract benefits if a qualified beneficiary is

accepted and enrolled in an eligible educational institution.

 

      Section 1. Payment of Value of the

Prepaid Tuition Contract to an Eligible Educational Institution. (1) A purchaser

shall submit sufficient documentation to the office indicating the admission of

a qualified beneficiary at an eligible educational institution. Failure to

timely submit this written notice to the office shall result in the assessment

of a late notice fee as required by 11 KAR 17:100 and delay in the payment from

the fund for qualified postsecondary education expenses.

      (2) Payments for qualified postsecondary

education expenses shall be paid by the fund only if the prepaid tuition

contract has been paid up-to-date, including payment of all applicable

administrative fees.

 

      Section 2. Remaining Prepaid Tuition

Contract Value. (1) If the value of the prepaid tuition account exceeds the

amount paid by the fund to an eligible educational institution on behalf of a

qualified beneficiary, the purchaser may make a written request to the office

for payment of any remaining value for any qualified postsecondary education

expenses.

      (2) If a qualified beneficiary receives a

scholarship which eliminates or reduces the amount of tuition to be paid to the

eligible educational institution at which the qualified beneficiary is

enrolled, the purchaser may request in writing to the office to:

      (a) Use any remaining value of the

prepaid tuition contract for the payment of other qualified postsecondary

education expenses; or

      (b) Receive a refund for the academic

year under KRS 164A.709(5). (30 Ky.R. 761; Am. 1196; eff. 12-1-2003.)