The right of a joint contributor as provided in the tuition prepayment is limited solely to right of survivorship in the event of the primary contributor's death. The joint contributor has no right to direct tuition prepayment contract changes, transfers, or terminations. Refunds shall be made payable to the primary contributor only. A primary contributor may modify or terminate the tuition prepayment contract and receive a refund without the consent or authorization of a joint contributor. 10.03 Additional Fees.
Postsecondary institutions charge fees in addition to the mandatory fees described here.
The designated beneficiary will bear the cost of any such additional fees which may include, but are not limited to, application fees, health fees, athletic fees, laboratory fees, dormitory fees, meal plan fees, book expenses, security deposits, and student activity fees. Nothing in the tuition prepayment contract or any supporting documentation must be construed as a promise or guarantee that a designated beneficiary may be admitted to a college or university or any other postsecondary institution, allowed to continue enrollment at a college or university or any other postsecondary institution after admission, or be graduated from a college or university or any other postsecondary institution. 10.05 Tax Status. Generally, there is no income tax due from the contributor or the designated beneficiary on the return on the Fund until tuition prepayment contract benefits are received. Program benefits receive favorable tax treatment at both the state and Federal levels.