(a) The state or any department, division or agency of the state may establish a scholarship program to award scholarships to students that consist of contributions and earnings accrued in a savings account created through the educational investment plan established pursuant to § 49-7-808. Any scholarship program established under this section shall be registered with the board.
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Terms Used In Tennessee Code 49-7-826

  • 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
  • beneficiary: means an individual designated under a tuition contract as the individual entitled to apply tuition units purchased under the contract to the payment of that individual's undergraduate, graduate and professional tuition, and other educational costs. See Tennessee Code 49-7-802
  • Board: means the board of trustees of the college savings trust fund program described in this part. See Tennessee Code 49-7-802
  • Code: means §. See Tennessee Code 49-7-802
  • Educational investment plan: means a plan that permits an account owner to establish an educational investment trust account and one (1) or more contributors to make contributions to an educational investment trust account that is intended to be applied to an account beneficiary's qualified higher education expenses. See Tennessee Code 49-7-802
  • Program: means the college savings trust fund program created in this part. See Tennessee Code 49-7-802
  • Redemption value: means the cash value of the educational investment trust account attributable to the sum of the principal invested, the interest earned or losses incurred in the principal, less any fees imposed by rule of the board. See Tennessee Code 49-7-802
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Tuition: means the charges imposed to attend an institution of higher education as an undergraduate, graduate or professional student and all fees required as a condition of enrollment as determined by the board. See Tennessee Code 49-7-802
(b) Notwithstanding any provision of this part to the contrary, the entity establishing and maintaining a scholarship program under this section shall not be required to select the scholarship beneficiary at the time the scholarship program is established. The entity establishing the scholarship program shall select the scholarship beneficiary and notify the board of the beneficiary by no later than thirty (30) calendar days prior to the start of the academic term in which the tuition benefits under the program are to be applied. The notification shall be in writing and shall include the name, address and social security number of the scholarship beneficiary, the amount of the redemption value of the account awarded and a statement specifying whether the scholarship beneficiary may receive a refund under this part. The entity establishing the scholarship program shall select the scholarship beneficiaries in accordance with criteria established by the entity.
(c) If a scholarship beneficiary does not use tuition benefits awarded under this section within a length of time specified under the scholarship program, the entity may select and award the benefits to a new beneficiary.
(d) The board may, through the promulgation of rules and regulations, authorize political subdivisions of the state and organizations that are exempt from federal income taxation under § 501(a) of the Internal Revenue Code and described in 26 U.S.C. § 501(c)(3), to establish scholarship programs pursuant to this section.
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