34 Tex. Admin. Code § 7.81 - Refunds
(a) Refunds shall be made in accordance with
provisions of these rules and the prepaid tuition contract, in a manner that
will not adversely affect the tax status of the program under applicable
provisions of the Internal Revenue Code, as amended from time to time. Refunds
shall be governed by these rules as amended and as in effect on the date the
request for refund is submitted to the board. The amount of any refund shall be
the sum of all payments made under the contract for tuition and required fees,
less fees due and payable to the program under the board's fee schedule and
less any amounts paid by the program pursuant to the prepaid tuition contract
prior to the refund.
(b) Refunds
shall be made to the purchaser of the prepaid tuition contract unless otherwise
designated by the purchaser in writing to the board in the event of the
purchaser's death.
(c) Should a
beneficiary terminate his/her student status on or after the date on which the
institution denies refunds to students withdrawing for a particular semester,
no refund shall be paid under the prepaid tuition contract for amounts relating
to such semester.
(d) Examples of
circumstances under these rules in which refunds may be made include, but are
not limited to, the following.
(1) Under any
plan if the beneficiary receives a full scholarship for tuition and required
fees, the amount of tuition and required fees that would have been paid under
the plan selected may be refunded. Under a junior college plan, junior/senior
college plan, or a senior college plan, the amount of such refund shall not
exceed the tuition scholarship amount. Refund payments may be issued each
academic term as long as the scholarship is effective. The purchaser of the
prepaid tuition contract shall be entitled to such refund. Proof of scholarship
must be submitted in a form acceptable to the board.
(2) Under the junior college plan,
junior/senior college plan or senior college plan, if a beneficiary receives a
partial scholarship for tuition and required fees, the tuition scholarship
amount may be refunded. Under the private college plan, if a beneficiary
receives a partial scholarship, a refund may be made in an amount equal to the
excess of the estimated average private tuition and required fee amounts, over
the actual tuition and required fee amounts less the scholarship amount. Refund
payments up to the amount determined in accordance with this paragraph may be
issued each academic term as long as the scholarship is effective. The
purchaser of the prepaid tuition contract shall be entitled to such refund.
Proof of scholarship must be submitted in a form acceptable to the
board.
(3) If the beneficiary dies
or becomes disabled while attending an institution of higher education or a
private or independent institution of higher education, the amount of benefits
remaining available under the prepaid tuition contract, less any applicable
fees, may be refunded. A lump sum refund may be made within 60 days of the date
the program is notified of the death or disability to the purchaser of the
prepaid tuition contract, provided proof of death or disability is submitted in
a form acceptable to the board.
(4)
If the beneficiary dies or becomes disabled after having graduated from high
school but prior to attending an institution of higher education or a private
or independent institution of higher education, a refund may be issued or the
benefits under such contract may be transferred to another qualified
beneficiary. If a change of beneficiary is not requested, a lump sum refund may
be made within 60 days of the date the program is notified of the death or
disability to the purchaser of the prepaid tuition contract, provided proof of
death or disability is submitted in a form acceptable to the board. Under the
junior college plan, junior/senior college plan, or senior college plan, the
refund will equal the average amount of tuition and required fees in effect at
the time the refund is requested. Under the private college plan, the refund
will equal the estimated average of private tuition and required fees as
determined annually by the board.
(5) If the beneficiary dies or becomes
disabled before the contract is paid in full, a refund may be issued or the
benefits under such contract may be transferred to another qualified
beneficiary. If a change of beneficiary is not requested, a lump sum refund may
be made within 60 days of the date the program is notified of the death or
disability to the purchaser of the prepaid tuition contract, provided proof of
death or disability is submitted in a form acceptable to the board. For junior
college plans, junior/senior college plans, or senior college plans, the refund
amount will be equal to a pro rata amount of the average amount of tuition and
required fees in effect at the time the refund is requested, such pro rata
amount determined by the number of payments made under the contract by the
purchaser to the number of payments required to pay the contract in full. For
private college plans, the refund amount will be equal to a pro rata amount of
the estimated amount of private tuition and required fees set forth in the
prepaid tuition contract, such pro rata amount determined by the number of
payments made under the contract by the purchaser to the number of payments
required to pay the contract in full.
(6) If a prepaid tuition contract is
terminated under §
7.82(c) of this
title (relating to Termination of Prepaid Tuition Contract), such contract may
be refunded in an amount equal to the present lump sum actuarial value, as of
the date of termination, of the average amount of tuition or the estimated
amount of private tuition and required fees of junior college plans,
junior/senior college plans or the estimated amount of private tuition and
required fees for the private college plan, less a cancellation fee; and any
other applicable fee. In no case shall a refund be made in an amount less than
the total amount paid by the purchaser under the contract less any applicable
administrative fees or amounts previously distributed.
(7) If the purchaser who selected the junior
college plan, junior/senior college plan, or senior college plan dies or
becomes disabled and payments cease before the contract is paid in full, and
unless otherwise directed by the purchaser in writing, a refund may be made.
The refund amount will be equal to a percentage of the average amount of
tuition and required fees in effect at the time the refund is requested,
determined by reference to the percentage of payments made under the contract
by the purchaser. If the purchaser who selected the private college plan dies
or becomes disabled and payments cease before the contract is paid in full, a
refund may be made. The refund amount will be equal to a percentage of the
estimated amount of private tuition and required fees set forth in the prepaid
tuition contract, determined by reference to the percentage of payments made
under the contract by the purchaser. A lump sum refund may be made within 60
days to the purchaser of the prepaid tuition contract unless otherwise
specified in writing by the purchaser as described in this paragraph. In the
alternative, contract benefits may be converted to a plan with reduced
benefits. Proof of death or disability shall be in a form acceptable to the
board. Notwithstanding any other provision of this paragraph, the purchaser, in
a writing to the board, and providing such other information as the board may
request, may designate a person who shall have a right of survivorship with
respect to purchaser's rights and obligations pursuant to a prepaid tuition
contract; provided that such designation shall in no way affect the purchaser's
ability to modify or terminate the contract and receive a refund without the
consent or authorization of the designee.
(8) Refunds may be made for other reasons as
approved by the board. By way of example, such refunds may be made in an amount
equal to the lowest amount of tuition and required fees of all institutions
under the plan selected, less a cancellation fee. Refund payments may be made
in semiannual installments to the purchaser of the prepaid tuition
contract.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.