(a) If the beneficiary of a prepaid tuition contract registers in a graduate or professional degree program before the termination of the contract and the beneficiary has not received payment under the contract for tuition and required fees for all of the semester credit hours to which the beneficiary is entitled, the beneficiary may apply the value of the remaining semester credit hours under the contract to the payment of the beneficiary's tuition and required fees in a graduate or professional school.
(b) The value of a semester credit hour under a prepaid tuition contract is equal to the average amount of tuition and required fees for an undergraduate semester credit hour for the same term or semester for which the beneficiary applies the payment to the beneficiary's tuition and required fees in a graduate or professional degree program.
(c) This section does not affect the date on which a prepaid tuition contract terminates and does not give the beneficiary the right to any payment under the contract after termination of the contract.

Source Note: The provisions of this §7.54 adopted to be effective December 3, 1997, 22 TexReg 11716.