Tex. Educ. Code Section 54.620
Prepaid Tuition Contract


(a)

The board may contract with a purchaser for the purchaser to prepay the tuition and required fees for a beneficiary to attend an institution of higher education or private or independent institution of higher education to which the beneficiary is admitted as a student.

(b)

The terms of a prepaid tuition contract shall be based on an actuarial analysis of:

(1)

the rates of increase of:

(A)

tuition and required fees at institutions of higher education; or

(B)

estimated average private tuition and required fees;

(2)

expected investment returns;

(3)

estimated administrative costs; and

(4)

the period between the date the contract is entered into and the date the beneficiary is projected to graduate from high school.

(c)

The board shall adopt a form for a prepaid tuition contract to be used by the board and purchasers.

(d)

A prepaid tuition contract must:

(1)

specify the amount and number of payments required from the purchaser on behalf of the beneficiary;

(2)

specify the terms under which the purchaser shall make payments, including the date on which each payment is due;

(3)

specify the consequences of default;

(4)

specify the name and date of birth of the beneficiary of the contract and the terms under which another person may be substituted as the beneficiary;

(5)

specify the number of credit hours contracted by the purchaser;

(6)

specify the type of plan toward which the contracted credit hours shall be applied;

(7)

contain an assumption of a contractual obligation by the board to the beneficiary to provide for a specified number of credit hours of undergraduate instruction at an institution of higher education or private or independent institution of higher education, not to exceed the typical number of credit hours required for the degree that corresponds to the plan purchased on behalf of the beneficiary;

(8)

specify the date the beneficiary is projected to graduate from high school; and

(9)

contain any other provisions the board considers necessary or appropriate.

(e)

A prepaid tuition contract does not cover the cost of laboratory fees charged for specific courses.
Added by Acts 1995, 74th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 1995.

Source: Section 54.620 — Prepaid Tuition Contract, https://statutes.­capitol.­texas.­gov/Docs/ED/htm/ED.­54.­htm#54.­620 (accessed Mar. 23, 2024).

54.001
Definitions
54.002
Applicability of Chapter
54.003
Tuition and Charges to Be Authorized by Law
54.004
Retention and Use of Funds
54.005
Right to Collect Special Fees
54.006
Refund or Adjustment of Tuition and Mandatory Fees for Dropped Courses and Student Withdrawals
54.007
Option to Pay Tuition by Installment
54.008
Tuition Rate Set by Governing Board
54.009
Increase in Tuition Rate or Fees
54.010
Reduction in Tuition
54.011
Tuition Limit in Cases of Concurrent Enrollment
54.012
Tuition Rates for Certain Doctoral Students
54.014
Tuition for Repeated or Excessive Undergraduate Hours
54.0015
Adoption of Certain Definitions by Rule
54.015
Billing and Notification for Tuition
54.016
Fixed Tuition Rate Program for Certain Transfer Students at General Academic Teaching Institutions
54.017
Fixed Tuition Price Plan for Undergraduate Students at Certain General Academic Teaching Institutions
54.0051
Disclosure of Course Fees in Course Catalog
54.051
Tuition Rates
54.052
Determination of Resident Status
54.053
Information Required to Establish Resident Status
54.054
Continuing Resident Status
54.055
Reclassification Based on Additional or Changed Information
54.056
Errors in Classification
54.057
Liability for Unpaid Nonresident Tuition
54.061
Reduced Designated Tuition Rates for Courses Provided During Off-peak Hours at Certain Institutions
54.0065
Tuition Rebate for Certain Undergraduates
54.0071
Authority of Institution to Provide Payment Options for Student with Delayed Financial Aid
54.075
Coordinating Board Rules
54.206
Foreign Service Officers
54.211
Faculty and Dependents
54.212
Teaching or Research Assistant
54.213
Scholarship Student
54.214
Biomedical Research Program
54.216
Students Enrolled in Course for Concurrent High School and College-level Credit
54.217
Students Enrolled in Fully Funded Courses
54.218
Distance Learning or Off-campus Courses
54.221
The University of Texas System
54.222
Economic Development and Diversification
54.223
Tuition Rates for Olympic Athletes
54.225
Students Enrolled in Non-semester-length Developmental Education Interventions
54.231
Resident of Bordering State or Nation or Participant in Student Exchange Program: Tuition
54.232
Nato Agreement
54.233
Academic Common Market
54.241
Military Personnel and Dependents
54.251
Registered Nurses in Postgraduate Nursing Degree Programs
54.261
Designated Tuition
54.262
Student Services Fees
54.301
Highest Ranking High School Graduates
54.331
Students from Other Nations of the American Hemisphere
54.341
Veterans and Other Military Personnel
54.342
Prisoners of War
54.343
Children of Prisoners of War or Persons Missing in Action
54.345
Assistance for Tuition and Fees for Members of State Military Forces
54.351
Children of Disabled Firefighters and Law Enforcement Officers
54.352
Disabled Peace Officers and Fire Fighters
54.353
Firefighters Enrolled in Fire Science Courses
54.354
Education Benefits for Certain Survivors
54.355
Children of Professional Nursing Program Faculty
54.356
Preceptors for Professional Nursing Education Programs
54.361
One-year Exemption for Certain Tanf Students
54.362
Funding of Exemptions
54.363
Educational Aides
54.364
Blind, Deaf Students
54.365
Senior Citizens
54.366
Exemptions for Students Under Conservatorship of Department of Family and Protective Services
54.367
Exemptions for Adopted Students Formerly in Foster or Other Residential Care
54.368
Interinstitutional Academic Programs
54.0501
Definitions
54.501
Laboratory Fees
54.502
General Deposits
54.503
Student Services Fees
54.504
Incidental Fees
54.505
Vehicle Registration Fees and Other Fees Related to Parking and Traffic
54.506
Fees and Charges for Services to the Public
54.508
Medical Services Fee
54.509
Student Recreation Fee
54.510
Student Recreational Sports Fee
54.511
Student Fees for Bus Service
54.512
Shuttle Bus Fee
54.0513
Designated Tuition
54.513
Student Service Fees
54.514
Student Fees Advisory Committee
54.0515
Legislative Oversight Committee on Higher Education
54.515
Student Union Fee
54.519
Student Union Fee
54.520
University Center Student Fee
54.522
Student Center Fees
54.523
Student Center Fees
54.525
Fees for Student Centers
54.526
Student Fees for University Centers
54.527
Student Fees for University Center Facilities
54.528
Recreational Facility Fee
54.529
Student Union Fee
54.530
Student Union Fees
54.531
Student Union Buildings Fees
54.532
Student Union Building Fees
54.533
Student Union Fees
54.534
Arts and Performance Center Fee
54.535
Student Union Fee
54.536
Fees for Student Health Services Building
54.537
Fees for Student Services Building
54.538
Recreational Sports Fee
54.540
Student Center Fee, University of Houston-clear Lake
54.541
Recreational Facility Fee
54.542
Student Union Facilities Fee
54.543
Recreational Facility Fee
54.544
Recreational Facility Fee
54.545
Fees for Continuing Education Courses
54.551
Intercollegiate Athletics Fee
54.0601
Nonresident Tuition Rates at Certain Institutions
54.601
Definitions
54.602
Establishment of Board
54.603
Sunset Provision
54.604
Termination or Modification of Program
54.605
Effect of Termination of Program on Contract
54.606
Members of Board
54.607
Duty in Recommending, Making, or Confirming Appointments
54.608
Restrictions on Board Appointment, Membership, and Employment
54.609
Removal of Board Member
54.610
Training of Board Members
54.611
Board Officers
54.612
Compensation and Expenses of Appointed Board Members
54.613
Meetings
54.614
Applicability of Open Meetings Law and Administrative Procedure Law
54.615
Executive Director
54.616
Program and Facility Accessibility
54.617
Public Interest Information and Complaints
54.618
Powers of Board
54.619
Prepaid Higher Education Tuition Program
54.620
Prepaid Tuition Contract
54.621
Beneficiary
54.622
Types of Plans
54.623
Junior College Plan
54.624
Senior College Plan
54.625
Junior-senior College Plan
54.626
Contract Payment
54.627
Change of Beneficiary
54.628
Conversion to Another Plan
54.629
Verification Under Oath
54.630
Promise or Guarantee of Admission
54.631
Contract Termination
54.632
Refund
54.633
Prepaid Higher Education Tuition Scholarships for Students
54.634
Establishment of Trust Fund
54.635
Comptroller
54.636
Investment of Fund Assets
54.637
Use of Fund Assets
54.639
Exemption from Creditors’ Claims
54.640
Actuarial Soundness of Fund
54.641
Statement Regarding Status of Prepaid Tuition Contract
54.642
Reports
54.643
Confidentiality
54.644
Tax Exempt Status Requirements
54.701
Definitions
54.702
Powers and Duties of Board
54.703
Operation of Plan
54.704
Selection of Financial Institution as Plan Manager
54.705
Duties of Plan Manager
54.706
Contract Between Board and Plan Manager
54.707
Savings Trust Accounts
54.708
Contributions and Withdrawals
54.709
Administration of Accounts
54.710
Plan Limitations
54.711
No Promise of Admission, Enrollment, or Graduation
54.712
Residency Not Required
54.713
Policies for Promotion and Disclosure of Information
54.714
Confidentiality of Records
54.715
Termination or Modification of Plan
54.716
Effect of Termination of Plan on Savings Trust Agreement
54.751
Definitions
54.752
Powers and Duties of Board Concerning Program
54.753
Prepaid Tuition Units: Purchase
54.754
Redemption of Tuition Units
54.755
Prepaid Tuition Contract
54.756
Purchaser
54.757
Contract Payment
54.758
Deferred Use of Prepaid Credit Hours
54.759
Change of Beneficiary
54.760
Verification Under Oath
54.761
Promise or Guarantee of Admission
54.762
Contract Termination
54.763
Refund
54.764
Fund
54.765
Comptroller’s Duties
54.766
Investment of Fund Assets
54.767
Use of Fund Assets
54.768
Exemption from Securities Laws
54.769
Exemption from Creditors’ Claims
54.770
Actuarial Soundness of Fund
54.771
Compliance with Limits on Contributions and Withdrawals
54.772
Tax Exempt Status Requirements
54.773
Suspension of New Enrollment
54.774
Effect of Program Termination on Contract
54.775
Confidentiality
54.776
Statement Regarding Status of Prepaid Tuition Contract
54.777
Information Required for Annual Report
54.778
Audit
54.801
Definitions
54.802
Texas Save and Match Program
54.803
Initial Eligibility for Participation in Program
54.804
Limitations
54.805
Matching Account Administration
54.806
Confidentiality
54.807
Pilot Projects Under Program
54.808
Texas Save and Match Trust Fund
54.809
Rules
54.901
Purposes of Program
54.902
Definitions
54.903
Creation of Program and Account
54.904
Powers and Duties of Board
54.905
Investment of Funds
54.906
Treatment of Assets
54.907
Exemption from Securities Laws
54.908
Participation Agreements
54.909
Use of Fund Assets
54.910
Designated Beneficiary
54.911
Verification Under Oath
54.912
Cancellation
54.913
Reports
54.914
Confidentiality of Records
54.915
Program Limitations
54.916
Termination or Modification of Program
54.2001
Continued Receipt of Exemptions or Waivers Conditional
54.2002
Exemptions and Waivers for State-funded Courses Only
54.2031
Dependent Children of Residents Who Are Members of Armed Forces Deployed on Combat Duty
54.3411
Permanent Fund Supporting Military and Veterans Exemptions
54.3531
Peace Officers Enrolled in Certain Courses
54.5011
Charges and Fees for Certain Payments
54.5021
Student Deposit Fund
54.5022
Investment of General Deposits
54.5025
Proration of Fees
54.5031
Student Fee Advisory Committee
54.5033
Student Fee Advisory Committee Meetings Open to Public
54.5035
Waiver of Fees
54.5041
Environmental Service Fee
54.5061
Student Services Fees
54.5062
Student Fees Advisory Committee
54.5081
Medical Services Fee
54.5085
Medical Services Fee
54.5089
Medical Services Fee
54.5091
Student Recreational Facility Fee
54.5111
Environmental Service Fee
54.5121
Intercollegiate Athletic Fee
54.5122
Recreational Facility Fee
54.5131
International Education Fee
54.5132
International Education Fee
54.5133
Martin Luther King, Jr
54.5135
Barbara Jordan and Cesar Chavez Statues Fee
54.5191
Intercollegiate Athletics Fee
54.5192
Intercollegiate Athletics Fee
54.5201
Recreational Sports Fee
54.5202
Intercollegiate Athletics Fee
54.5221
Recreational Facility Fee
54.5222
Medical Services Fee
54.5223
Intercollegiate Athletics Fee: Texas Southern University
54.5241
Student Union Fees
54.5251
Student Fitness and Recreational Fee
54.5311
Transportation Fee
54.5312
Student Services Buildings Fee
54.5313
Intramural and Intercollegiate Athletics Fee
54.5321
Transportation Fee
54.5322
Intercollegiate Athletics Fee
54.5331
Intercollegiate Athletic Fee
54.5332
Fees for Student Services Building
54.5341
Student Recreational Facility Fee
54.5342
Intercollegiate Athletics Fee
54.5343
Student Union Fee
54.5371
Gregory Gymnasium Renovation Fee
54.5372
Aquatics Center Fee
54.5381
Intercollegiate Athletics Fee: Certain Institutions in Texas State University System
54.5382
Intercollegiate Athletics Fee: Texas State University
54.5394
Intercollegiate Athletics Fee: Tarleton State University
54.5401
Recreation and Wellness Facility Fee
54.5402
Wellness and Success Center Fee
54.5405
Student Center Fee
54.5406
Health and Wellness Center Fee
54.5421
Sports Recreation and Wellness Facility Fee
54.6001
Public Purpose
54.6085
Prepaid Higher Education Tuition Board Ethics Policy
54.6175
Use of Technology
54.6181
Advisory Committees
54.6195
Application for Enrollment
54.6245
Graduate and Professional Degree Plans
54.6251
Private College Plan
54.6252
Contract for Additional Credit Hours
54.6261
Deferred Use of Prepaid Credit Hours
54.6262
Application of Unused Credit Hours to Graduate Tuition
54.6385
Exemption from Securities Laws
54.6401
Compliance with Limits on Contributions and Withdrawals
54.9045
Collection of Fees
54.9065
Exclusion of Able Account Assets from Certain Benefit Eligibility Determinations
54.9085
Encumbrance or Transfer of Account Prohibited
54.50891
Medical Services Fee

Accessed:
Mar. 23, 2024

§ 54.620’s source at texas​.gov