2013 Kentucky Revised Statutes CHAPTER 164A - HIGHER EDUCATION FINANCE 164A.705 Obligations of fund and of purchaser or qualified beneficiary -- Limitation of liability -- Use of tuition account.
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164A.705 Obligations of fund and of purchaser or qualified beneficiary -Limitation of liability -- Use of tuition account.
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The prepaid tuition contract entered into by the purchaser and the board shall
constitute an irrevocable pledge and guarantee by the fund to pay for the
tuition of a qualified beneficiary upon acceptance and enrollment at an eligible
educational institution in accordance with the tuition plan purchased.
A board member or any employee of the Tuition Account Program Office or the
Kentucky Higher Education Assistance Authority shall not be subject to any
personal liability by reason of his or her issuance or execution of a prepaid
tuition contract under KRS 164A.700 to 164A.709.
Under a tuition plan for private colleges and universities, tuition shall be paid
based on the same percentage that University of Kentucky tuition is increased
from the year the prepaid tuition contract is purchased to the year of payment.
The purchaser or qualified beneficiary shall pay to the eligible educational
institution the amount of any prepaid tuition academic year conversion shortfall
and the amount of any prepaid tuition conversion shortfall.
A qualified beneficiary attending an eligible educational institution may apply
the value of a prepaid tuition account to a specific academic year at the
maximum course load or maximum number of credit hours generally permitted
to full-time undergraduates at that institution.
The value of a prepaid tuition account remaining after tuition is paid may be
used for other qualified educational expenses under administrative regulations
promulgated by the board in compliance with 26 U.S.C. sec. 529. The board
may permit the use of the value of a prepaid tuition account for part-time
undergraduate enrollment or graduate programs at eligible educational
institutions.
If a qualified beneficiary attends an eligible educational institution for which
payment of tuition is not guaranteed by the fund in whole or in part, and if the
cost of tuition exceeds the value of a prepaid tuition account, the fund shall
have no responsibility to pay the difference. If the value of a prepaid tuition
account exceeds the cost of tuition, the excess may be used for other qualified
postsecondary education expenses as directed by the purchaser.
The value of a prepaid tuition account shall not be used in calculating personal
asset contribution for determining eligibility and need for student loan
programs, student grant programs, or other student aid programs administered
by any agency of the Commonwealth, except as otherwise may be provided by
federal law.
Effective:April 25, 2006
History: Amended 2006 Ky. Acts ch. 252, Pt. XXXI, sec. 5, effective April 25, 2006.
-- Amended 2005 Ky. Acts ch. 162, sec. 6, effective July 1, 2005. -- Amended
2002 Ky. Acts ch. 25, sec. 5, effective July 15, 2002. -- Created 2000 Ky. Acts
ch. 163, sec. 5, effective July 14, 2000.
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