New Mexico § 21-1-40 - Prepaid higher education tuition program; feasibility study; guidelines

§ 21-1-40. Prepaid higher education tuition program; feasibility study; guidelines

A. The higher education department 1 shall conduct a thorough study to determine the feasibility of creating a prepaid

higher education tuition program, which shall include requirements that: (1) prepaid tuition contracts, once paid, will cover all tuition and required fees

of the institution of higher education; (2) payments for prepaid tuition contracts may be made either in a lump sum or in

installments; (3) the prepaid tuition contracts shall: (a) allow purchasers to choose from payment plans that pay the tuition and required

fees for either a community college, four-year or in-state, private post-secondary

educational institution; (b) allow for rollover of prepaid higher education tuition benefits from one plan

to another, and that provide that benefits may be used at any community college, four-year

or in-state, private post-secondary educational institution; (c) include penalties for termination of the contract or default on any of the contract's

terms or conditions; and (d) include provisions that allow purchasers to change or switch beneficiaries; (4) beneficiaries meet certain minimum eligibility requirements; (5) when setting contract prices, the commission [department] consider: (a) the amount and estimated rate of increase of tuition and fees at institutions

of higher education; (b) expected investment returns; (c) estimated administrative costs; and (d) the period between the date the contract is entered into and the date the beneficiary

is projected to graduate from high school; (6) allow for gifts or bequests either on behalf of a beneficiary or to the fund generally; (7) institutions of higher education are either required to participate or that the

commission [department] may specify how and when institutions of higher education

become eligible to participate in the program; (8) benefits under a prepaid tuition contract are excluded from any calculation of

a beneficiary's state student-aid eligibility; and (9) a program established pursuant to the requirements set forth in this section shall

not obligate or encumber any money deposited in the state permanent fund, the severance

tax bond fund or any money that is a part of a state-funded financial aid program. B. The commission [department] 1 shall report its findings to the appropriate interim legislative committee no later

than October 15, 1997. The report shall include a recommendation from the commission [department] regarding

the feasibility of implementing a prepaid higher education tuition program based on

the requirements set forth in Subsection A of this section. 1

References to the commission on higher education are deemed references to the higher

education department; see NMSA 1978, § 9-25-4.1.