(a) For prepaid tuition contracts issued under the junior college plan, junior/senior college plan, or senior college plan, the tuition and required fees paid pursuant to such prepaid tuition contracts shall be paid in accordance with the rates charged to Texas residents.

(b) For prepaid tuition contracts issued under the private college plan, tuition and required fees paid pursuant to the prepaid tuition contract shall be limited to the estimated average private tuition and required fees as determined by the board on an annual basis.

(c) For prepaid tuition contracts issued under the senior college, junior/senior college, or junior college plan, where tuition and required fee payments are made to Texas higher education institutions not of the plan selected, payments to the institution shall be based on a calculation of the average tuition rate of the plan selected.

(d) Any prepaid tuition contract purchased under this program may be applied to the payment of tuition and required fees at a proprietary school meeting the requirements of the United States Internal Revenue Code, §529(e)(5), as an "eligible education institution," as if the proprietary school were an institution of higher education or private or independent institution of higher education. On the purchaser's request, the board shall apply any existing amount of prepaid tuition contract benefits, as determined by the average rate of tuition and fees under the contract purchased, to the payment of tuition and required fees at such a proprietary school. The board is not responsible for the payment of tuition and required fees at the proprietary school in excess of that amount.

Source Note: The provisions of this §7.51 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective December 3, 1997, 22 TexReg 11716; amended to be effective January 3, 1999, 23 TexReg 13103; amended to be effective February 16, 2000, 25 TexReg 1123