(a) A prepaid tuition contract remains in effect after the program is terminated if, when the program is terminated, the beneficiary:
(1) has been accepted by or is enrolled in an institution of higher education, a private or independent institution of higher education, a career school or college, or a registered apprenticeship program described by § 54.619(i); or
(2) is projected to graduate from high school not later than the third anniversary of the date the program is terminated.
(b) A prepaid tuition contract terminates when the program is terminated if the contract does not remain in effect under Subsection (a).

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Terms Used In Texas Education Code 54.605

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Contract: A legal written agreement that becomes binding when signed.