Louisiana Administrative Code › Title 28 - EDUCATION › Part VI - Student Financial Assistance-Higher Education Savings › Chapter 1 - General Provisions › Section VI-107 - Applicable Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. Words
				and terms not otherwise defined in these rules shall have the meanings ascribed
				to such words and terms in this Section. Where the masculine is used in these
				rules, it includes the feminine, and vice versa; where the singular is used, it
				includes the plural, and vice versa.
Account Owner
-the
person
(s), independent student, organization or group that
				  completes the START Saving Program owner's agreement on behalf of a beneficiary
				  and is the account owner of record of all funds credited to the account.
Beneficiary
-the person named by the account
				  owner in the Education Savings Account (ESA) owner's agreement or the person
				  named by the LATTA when authorized to make such a designation by the owner of
				  an account that is classified under
				  §303. A.6 as the
				  individual entitled to apply the account balance, or portions thereof, toward
				  payment of their qualified higher education expenses.
Beneficiary's Family
-for the purpose of
				  §303. A.6 one of the
				  following persons:
a. the
				beneficiary's parent(s) or court ordered custodian; or
b. a person who claims the beneficiary as a
				dependent on his or her federal income tax return for the previous year;
				or
c. a person who certified that
				the beneficiary lives with him, that he provides more than 50 percent of the
				beneficiary's support for the previous year and that he was not required to
				file an income tax return for the previous year.
Current Value
-the value of an education
				  savings account at a given point in time.
a. The current value of fixed earnings
				investment options includes the accumulated value of the principal deposited,
				earnings on deposits, earnings enhancements (EEs) allocated to the account and
				the earnings on the EEs.
b. The
				current value of variable earnings investment options includes the number of
				units in the investment option purchased multiplied by the current value of
				each unit plus the earnings enhancements (EEs) allocated to the account and the
				earnings on the EEs. This value may be more or less than the amount originally
				deposited.
Deposits
-the actual amount of money received
				  from an account owner for investment in an education savings account. Deposits
				  do not include earnings on deposits nor earnings enhancements or interest
				  earned thereon.
Disabled
or
Disability
-an
				  individual who is considered to be disabled because he/she is unable to engage
				  in any substantial gainful activity by reason of any medically determinable
				  physical or mental impairment which can be expected to result in death or to be
				  of long-continued and indefinite duration. An individual shall not be
				  considered disabled unless he furnishes proof of the existence thereof in such
				  form and manner as the LATTA may require.
Earnings Enhancement (EE)
-a payment
				  allocated to an ESA on behalf of the beneficiary of the account by the state.
				  The amount of the annual EE is calculated based upon the classification of an
				  account, the annual federal adjusted gross income of the account owner, and
				  total annual deposits of principal into an ESA, including deposits in fixed
				  earning and variable earnings options. EEs and the interest earned thereon may
				  only be used to pay the beneficiary's qualified higher education expenses, or
				  portion thereof, at an eligible educational institution and cannot be
				  refunded.
Earnings Enhancement Cap
-the maximum of
				  deposits in an account for which earnings enhancements will be paid. The
				  earnings enhancement cap is reached when an account has a current value that is
				  equal to or exceeds five times the annual qualified higher education expenses
				  at the highest cost Louisiana public college or university, projected to the
				  scheduled date of first enrollment. The projected qualified higher education
				  expenses at each eligible educational institution shall be updated by the
				  administering agency. On the date of the beneficiary's first enrollment in an
				  eligible educational institution, the earnings enhancement cap will be fixed at
				  five times the annual qualified higher education expenses at the highest cost
				  Louisiana public college or university, for the academic year of enrollment or
				  the projected amount, whichever is greater.
Education Savings Account (ESA)
-a savings
				  account established by a natural person or a legal entity to pay qualified
				  higher education expenses of the designated beneficiary.
Educational Term
-a semester, quarter, term,
				  summer session, inter-session, or an equivalent unit.
Eligible Educational
				  Institution
-either:
a. a
				state college or university or a technical college or institute or an
				independent college or university located in this state that is approved by the
				U.S. Secretary of Education to participate in a program under title IV of the
				Higher Education Act of 1965 (20 U.S.C.
				1088), as amended; or
b. a public or independent college or a
				university located outside this state that is approved by the U.S. secretary of
				education to participate in a program under title IV of the Higher Education
				Act of 1965 (20 U.S.C. 1088), as
				amended; or
c. a Louisiana licensed
				proprietary school, licensed pursuant to R.S. chapter 24-A of title 17, and any
				subsequent amendments thereto and is eligible to participate in a program under
				title IV of the Higher Education Act of 1965 (20 U.S.C.
				1088), as amended.
d. beginning in the 2018 academic year, a
				proprietary school located outside the state of Louisiana that is licensed by
				an out of state public postsecondary education board, is accredited by a
				recognized national or regional accrediting body, and is eligible to
				participate in a program under title IV of the Higher Education Act of 1965
				(20
				U.S.C. 1088), as amended.
False or Misleading Information
-a statement
				  or response made by a person, which is knowingly false or misleading, and made
				  for the purpose of establishing a program account and/or receiving benefits to
				  which the person would not otherwise be entitled.
Fixed Earnings
-the placement of all deposits
				  in an ESA, including the interest earned thereon, in investments that normally
				  provide a fixed rate of return for a specific period of time.
Independent Student
-is a person who is
				  defined as an independent student by the Higher Education Act of 1965
				  (20
				  U.S.C. 1088) (HEA), as amended, and if
				  required, files an individual federal income tax return in his/her name and
				  designates him/herself as the beneficiary of an ESA.
a. The HEA defines
independent
				student
as a student who:
i. reached
				24 years of age prior to January of the year preceding the academic year for
				which the student is applying for aid;
ii. is a veteran of the U.S. Armed Forces,
				including a student who was activated to serve in Operation Desert Storm or is
				currently serving on active duty in the Armed Forces for other than training
				purposes;
iii. is an orphan, in
				foster care, or a ward of the court or was in foster care or was a ward of the
				court until the individual reached the age of 18;
iv. has legal dependents other than a
				spouse;
v. is a graduate or
				professional student;
vi. is
				married; or
vii. has been
				determined independent by a financial aid officer exercising professional
				judgment in accordance with applicable provisions of the HEA.
b. An independent student may only
				open an account as an account owner if he/she is 18 years or older.
Legal Entity
-juridical person including,
				  but not limited to, groups, trusts, estates, associations, organizations,
				  partnerships, and corporations that are incorporated, organized, established,
				  or authorized to conduct business in accordance with the laws of one or more
				  states or territories of the United States. A natural person is not a legal
				  entity.
Louisiana Education Tuition and Savings
				  Fund
(
the Fund
)-is a special permanent fund
				  maintained by the Louisiana state treasurer for the purpose of the START Saving
				  Program and is the account into which all initial deposits made to ESAs are
				  deposited. The fund includes the Savings Enhancement Fund, which is a special
				  sub-account designated to receive earnings enhancements appropriated by the
				  state, and interest earned thereon.
Louisiana Office of Student Financial
				  Assistance
(
LOSFA)
-the agency of state government
				  responsible for administering the START Saving Program under the direction of
				  the Louisiana Tuition Trust Authority.
Louisiana Resident
-
a. any person who resided in the state of
				Louisiana on the date of the application and who has manifested intent to
				remain in the state by establishing Louisiana as legal domicile, as
				demonstrated by compliance with all of the following:
i. if registered to vote, is registered to
				vote in Louisiana;
ii. if licensed
				to drive a motor vehicle, is in possession of a Louisiana driver's
				license;
iii. if owning a motor
				vehicle located within Louisiana, is in possession of a Louisiana registration
				for that vehicle;
iv. if earning an
				income, has complied with state income tax laws and regulations;
b. a member of the Armed Forces
				stationed outside of Louisiana who claims Louisiana on his/her official DD Form
				2058 as his/her legal residence for tax purposes, and is in compliance with
				state income tax laws and regulations, shall be considered eligible for program
				participation;
c. a member of the
				Armed Forces stationed in Louisiana under permanent change of station orders
				shall be considered eligible for program participation;
d. persons less than 21 years of age are
				considered Louisiana residents if they reside with and are dependent upon one
				or more persons who meet the above requirements;
e. a legal entity is considered to be a
				Louisiana resident if it is incorporated, organized, established or authorized
				to conduct business in accordance with the laws of Louisiana or registered with
				the Louisiana Secretary of State to conduct business in Louisiana and has a
				physical place of business in Louisiana.
Louisiana Tuition Trust Authority
				  (LATTA)
-the statutory body responsible for the administration of the
				  START Saving Program.
Maximum Allowable Account
				  Balance
-$500,000.
Member of the Family
(with respect to the
				  designated beneficiary)-
a. the spouse
				of such beneficiary; or
b. an
				individual who bears one of the following relationships to such beneficiary:
i. a son or daughter of the beneficiary, or a
				descendant of either;
ii. a stepson
				or stepdaughter of the beneficiary;
iii. a brother, sister, stepbrother, or
				stepsister of the beneficiary;
iv.
				the father or mother of the beneficiary, or an ancestor of either;
v. a stepfather or stepmother of the
				beneficiary;
vi. a son or daughter
				of a brother or sister of the beneficiary;
vii. a brother or sister of the father or
				mother of the beneficiary; or
viii.
				a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or
				sister-in-law of the beneficiary; or
ix. a first cousin of the beneficiary;
				or
c. the spouse of an
				individual listed in Clauses b.i-viii.
Natural Person
-a human being.
Other Person
(with respect to any designated
				  beneficiary)-any person, other than the beneficiary, whether natural or
				  juridical, who is not a member of the family, including but not limited to
				  individuals, groups, trusts, estates, associations, organizations,
				  partnerships, corporations, and custodians under the Uniform Transfer to Minors
				  Act (UTMA).
Owner's Agreement
-the agreement for program
				  participation that the account owner completes and signs. It incorporates, by
				  reference,
				  R.S.
				  17:3091 et seq., and the rules promulgated by
				  the LATTA to implement this statutory provision and any other state or federal
				  laws applicable to the agreement and the terms and conditions as set forth
				  therein.
Person
-a human being or a juridical
				  entity.
Qualified Education Loan
-any indebtedness
				  incurred by the taxpayer solely to pay qualified higher education
				  expenses:
a. which are incurred on
				behalf of the taxpayer, the taxpayer's spouse, or any dependent of the taxpayer
				as of the time the indebtedness was incurred;
b. which are paid or incurred within a
				reasonable period of time before or after the indebtedness is incurred;
				and
c. which are attributable to
				education furnished during a period during which the recipient was an eligible
				student.
Qualified Higher Education Expenses
-
a. tuition, fees, books, supplies, and
				equipment required for the enrollment or attendance of a designated beneficiary
				at an eligible educational institution; and
b. room and board; and
c. expenses for special needs services in the
				case of a special needs beneficiary, which are incurred in connection with such
				enrollment or attendance; and
d.
				for the calendar years 2009 and 2010 only, expenses paid or incurred for the
				purchase of any computer technology or equipment or Internet access and related
				services, if such technology, equipment, or services are to be used by the
				beneficiary and the beneficiary's family during any of the years the
				beneficiary is enrolled at an eligible educational institution, but shall not
				include expenses for computer software designed for sports, games, or hobbies
				unless the software is predominately educational in nature;
e. for calendar year 2015 and thereafter,
				expenses for the purchase of computer or peripheral equipment, computer
				software, or Internet access and related services, if such equipment, software,
				or services are to be used primarily by the beneficiary during any of the years
				the beneficiary is enrolled at an eligible educational institution, but shall
				not include expenses for computer software designed for sports, games, or
				hobbies unless the software is predominately educational in nature.
f. for calendar year 2019 and thereafter,
				expenses for fees, books, supplies, and equipment required for the
				participation of the designated beneficiary in an apprenticeship program which
				is registered and certified with the United State Secretary of Labor under
				section 1 of the National Apprenticeship Act.
g. for calendar year 2019 and thereafter, a
				maximum of $10,000 per individual for the payment of principal and/or interest
				on a qualified education loan of the designated beneficiary or a sibling of the
				designated beneficiary.