A bill to amend 1986 PA 316, entitled “Michigan education trust act,” by amending sections 4 and 8 (MCL 390.1424 and 390.1428), section 8 as amended by 2004 PA 388.
House Bill No. 5782 aims to modify the Michigan Education Trust Act of 1986, specifically revising sections 4 and 8. These revisions include updates to key definitions such as "advance tuition payment contract," "board," "fund," "purchaser," "qualified beneficiary," "state institution of higher education," "trust," "tuition," and "weighted average tuition cost of state institutions of higher education." The bill sets forth conditions under which an advance tuition payment contract may be terminated, including scenarios like the death of the beneficiary, non-admission to a state institution, or the beneficiary's choice to attend a different eligible educational institution or not to attend a state institution at all. It also details the conditions for refunds, specifying the amount and timing, and allows for refunds to be directed to other educational institutions under certain conditions. The refund amount is determined to be no less than the prevailing weighted average tuition cost of state institutions for the number of credit hours covered by the contract at the time of termination. Additionally, the bill permits the trust to offer non-refundable contracts for scholarship programs, with the price of these contracts reflecting the non-refundable terms.
Co-sponsored by Reps.
Referred to the Committee on Higher Education
