§ 601.2. Termination of tuition account payment contracts, refunds and settlement.
(a) In addition to circumstances in section 313 of the act (24 P. S. § 6901.313), a tuition account may be terminated for the other reasons specified in this section.
(1) Termination at the will of the purchaser. A tuition account payment contract may be terminated at the will of the purchaser. The Department will settle the tuition account and pay to the purchaser a refund in an amount as specified under subsection (c).
(2) Termination for material misrepresentation. The Department may terminate a tuition account payment contract if it determines that the purchaser or beneficiary has made a material misrepresentation regarding information required to be submitted to the Department in writing. On termination of the tuition account payment contract under this subsection, the Department will settle the tuition account and pay to the purchaser a refund in an amount as specified under subsection (c).
(b) Procedure for termination of a tuition account payment contract and request for refund.
(1) The Department will terminate a tuition account payment contract under subsection (a)(1) only upon written request of the purchaser.
(2) The written request shall contain the following information:
(i) The purchaser’s name.
(ii) The beneficiary’s name.
(iii) The tuition account payment contract number.
(iv) The reason for termination.
(v) Supporting documentation as required by the Department.
(3) The Department will terminate a tuition account payment contract under subsection (a)(1) only after the purchaser pays to the Department a reasonable fee to be determined by the Department and specified in the tuition account payment contract.
(c) Amount of refund. On termination of a tuition account payment contract for reasons in this section, the Department will pay to the purchaser, as final payment, the lesser of one of the following:
(1) Ninety percent of the tuition for the number of tuition credits purchased at the standard tuition level or at the tuition level for a specific participating institution, as designated in the tuition account payment contract, as periodically amended.
(2) Ninety percent of the value of the account.
(3) The sum of payments made by the purchaser, or on behalf of the purchaser, for the purchase of tuition credits or tuition units.
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