Florida Prepaid College Foundation, Inc. Private Donor Policies and

Florida Prepaid College Foundation, Inc.

Private Donor

Policies and Procedures

Contract Year 2010/2011

Exhibit “A”

Authorized by the legislature in 1989, the Florida Prepaid College Foundation, Inc. is a partnership

between state government and the private sector. The Foundation administers the scholarship program,

which was designed to provide Prepaid postsecondary tuition scholarships to students to redirect their lives

and enhance their career goals.

The Florida Prepaid College Foundation, Inc. is a non-profit 501(c)(3) direct support

organization for the Florida Prepaid College Board.

Table of Contents

Section/Contents

Page Number

(1) Definitions 3

(2) Donor Participation Process 4

(3) Payment/Purchase Options 4

(4) Contract Pricing/Fees 4

(5) Contract Plan Types 5

(6) Scholarship Assignment 7

(7) Identification Cards/Contract Benefits/Exclusions 8

(8) Transferability 9

(9) Cancellation of Contracts/Terminations 10

(10) Refunds 10

(1) Definitions:

(a) Florida Prepaid College Foundation Scholarship- a Florida

Prepaid College plan purchased by the Donor through the

Florida Prepaid College Foundation.

(b) Memorandum of Understanding “MOU”-Contract agreement

between the Florida Prepaid College Foundation and the Donor,

pursuant to the Policies and Procedures of the Florida Prepaid

College Foundation Board.

established by F.S. 1009.983 and F.S. 1009.984.

(d) Foundation Board- the Florida Prepaid College Foundation

Board, pursuant to F.S. 1009.983(5).

(e) Board-the Florida Prepaid College Board, pursuant to F.S>

1009.971.

(f) Donor-A nonprofit organization described in s. 501(c)(3) of the

United States IRS Code and exempt from taxation under s.

501(a) of the United States IRS Code, pursuant to F.S.

1009.984, may/that purchases scholarships for a scholarship

program that has been approved by the Board and is operated

by the purchasing organization.

(g) Designated beneficiary-means the recipient of a Florida

Prepaid College Foundation scholarship selected/identified by

the Donor.

(h) Assignment- means a designated beneficiary’s personal

information and residency documentation has been sent to the

Foundation and the beneficiary’s name and information are

attached to a scholarship.

(i) Qualified Beneficiary- Individuals qualified to participate in

the Florida Prepaid College Foundation scholarship program

must meet the following criteria:

1. An individual who is under the age of 21 and has not

completed the 12

grade.

2. A resident of Florida for 12 consecutive months prior to

assignment to a Foundation Prepaid scholarship, or a non-

resident who is the child of a non-custodial parent who is a

resident of this state. Documentation shall be in such form

as required by the Board and may include a copy of the

court order. The qualified beneficiary must be either a

United States citizen or a resident alien.

3. Graduate from an accredited high school in this state, or

meet the minimum criteria, pursuant to F.S. 1003.433(2)-K-

12 Public Education Instruction, for admission to a

postsecondary education institution.

(2) Donor Participation Process:

A. There is no application process for Donors wanting to purchase

Florida Prepaid College Foundation Scholarships. First time Donors

must send, in writing, to the Foundation certification that they are a

state or local government or an organization described in s. 501(c)(3) of

the IRS Code, and 19B-5.007(2) F.A.C. Potential Donors must agree to

comply with the terms of the Memorandum of Understanding, Florida

Statutes and Rules governing the Florida Prepaid College Board and

Foundation, pursuant to F.S. 1009.983 and 1009.984, and the Policies

and Procedures of the Florida Prepaid College Foundation.

(3) Payment/Purchase Options:

A. Once the Donor organization/individual is approved by the Board to

participate in the Florida Prepaid College Foundation Scholarship

Program, the Donor may purchase scholarships by sending a letter

indicating the number of scholarships, plan type of scholarships,

age/grade level of scholarships, and a check for the total cost of the

scholarships, plus a $50.00 application fee for each scholarship

purchased. Scholarships, purchased through the Florida Prepaid College

Foundation, must be paid in advance by providing a lump sum payment

to the foundation.

B. The information and check should be mailed to the Florida Prepaid

College Foundation, P.O, Box 1117, Tallahassee, Florida, 32302. A

Memorandum of Understanding will be mailed to the Donor for signature

once the scholarships have been purchased.

C. Scholarships may be purchased from October 1 through August 30 of

each year

(4) Contract Prices/Fees:

A. Florida Prepaid College contracts are established by the Florida

Prepaid College Board annually in September and are based on actuarial

assumptions pursuant to 19B-4.002, F. A. C. Foundation prices are valid

October 1 through August 30 of each year.

B. A fifty dollar ($50.00) nonrefundable application fee will be collected at

the time of purchase of all/each Foundation scholarship(s).

C. A fee of ten dollars ($10.00) will be assessed to any Local Fee Plan,

Tuition Differential Fee or Dormitory Plan that is subsequently added to

an existing Tuition Plan purchased prior to August 30, 2010, or to a

Dormitory Plan that is added subsequently to a Prepaid Plan purchased

after September 1, 2010.

(5) Contract Plan Types:

A. The Foundation offers 5 separate plan types that prepay the tuition,

registration fees, the tuition differential fee and local fees at a state

university or Florida College.

4-Year Florida University Plan - The 4-Year Florida University Plan prepays

tuition, registration fees, the tuition differential fee and local fees for 120

undergraduate semester credit hours at a state university in Florida.

2 + 2 Florida Plan - The 2 + 2 Florida Plan prepays tuition, registration

fees and local fees for 60 lower division semester hours at a Florida

College and tuition, registration fees, the tuition differential fee and local

fees for 60 semester credit hours at a state university.

4-Year Florida College Plan - The 4-Year Florida College Plan prepays

tuition, registration fees and local fees for 60 lower division semester

credit hours as well as 60 upper division semester credit hours at a

Florida College.

2-Year Florida College Plan - The 2-Year Florida College Plan prepays

tuition, registration fees and local fees for 60 lower division semester

credit hours at any of the 28 Florida Colleges.

2-Year Florida College Foundation Plan

- The 2-Year Florida College Plan

prepays tuition, registration fees and local fees for 72 lower division

semester credit hours at any of the 28 Florida Colleges

B. The local fee plan may be added to a tuition only plan purchased prior

to August 30, 2010. The Local Fee Plan covers the required activity and

service, health and athletic fees charged by Florida’s state universities

and/or the required student activity and service and technology fees

charged by Florida Colleges. Local fee contracts purchased after July 1,

1999 also cover the technology fee imposed by the universities and

Florida Colleges.

Local fee plans consist of four separate plans:

4-Yr University Local Fee Plan – The 4-Yr University Local Fee Plan

prepays the local fees for 120 credit hours at a state university.

2 + 2 Local Fee Plan – The 2 + 2 Local Fee Plan prepays the local fees for

60 credit hours at a Florida College and 60 credit hours at a state

university.

2-Yr FL College Local Fee Plan – The 2-Yr FL College Local Fee Plan

prepays local fees for 60 credit hours at a Florida College.

2-Yr FPCF Local Fee Plan

– The 2-Yr FPCF Local Fee Plan prepays the

local fees for 72 credit hours at a Florida College.

C. The tuition differential fee plan may be added to a tuition only plan

purchased between October 1, 2007 and August 30, 2010. The Tuition

Differential Fee Plan covers the tuition differential fee charged by a public

university in Florida pursuant to Section 1009.24(16), Florida Statutes.

All state universities in Florida charge this fee.

Tuition Differential Fee plans consist of two separate plans:

4-Yr University TDF Plan – The 4-Yr University TDF Plan prepays the

tuition differential fees for 120 credit hours at a state university.

2 + 2 TDF Plan

– The 2 + 2 TDF Plan prepays the tuition differential fees

for 60 credit hours at a state university.

D. Florida Prepaid College plans do not cover fees and costs related to

books, meals, transportation, graduate school, and institutionally-

imposed fees such as laboratory fees.

Dormitory Plan

The Dormitory Plan prepays the payment for a standard, double-

occupancy, air-conditioned dormitory room at a Florida state university.

The Dormitory Plan may be purchased in one-year increments for up to

two years (with a 2 + 2 Florida Plan or a 2+2 Tuition Plan) and up to four

years (with a 4-Year Florida University Plan or a 4-Yr FL University

Tuition Plan) and is offered only for a child in the eleventh grade or

below. You may purchase a Dormitory Plan along with a corresponding

Prepaid Plan or supplement an existing Prepaid Plan at a later date.

The state universities determine which dorms are designated for Florida

Prepaid College Plan students. Not all dorms are offered. Rooms are

assigned first-come first-serve, so there is no guarantee that the student

will receive a room assignment. If a student applies for housing at a state

university but does not receive a room assignment, the account owner

may request a refund equal to the average dormitory rate for a standard,

double-occupancy, air-conditioned dormitory room at the state university

the student is attending. The Dormitory Plan cannot be used in summer

terms.

(6) Scholarship Assignment:

A. The Florida Prepaid College Foundation and organizations operating

scholarship programs that purchase Florida Prepaid College Foundation

scholarships do not need to identify the qualified beneficiary at the time

the scholarship is purchased, however, the beneficiary must be assigned

to the scholarship by May 15 of the anticipated matriculation year for the

beneficiaries to receive their identification cards in a timely manner.

B. To assign a scholarship to a qualified beneficiary, you must provide

the following student information to the Foundation office prior to the

beneficiary registering for classes:

Name

Florida Prepaid College Plan Account Number

Student’s Social Security Number

a beneficiary unless a social security number is submitted.

- No identification card will be issued to

Permanent Home Address and Phone Number

Name of Parent/Guardian

Date of Birth

Proof of Residency

a. Florida driver’s license, for the student, issued at lease one

year ago.

- may consist of one of the following documents:

b. Transcript or report card for the student from the 11

grade;

c. Florida driver’s license, for parent or guardian, issued at

least one year ago.

d. Florida voter’s registration card, for the parent/guardian,

issued at least one year ago.

e. Florida homestead exemption certificate, for the parent/

guardian for prior year.

f. Documentation of full-time employment in Florida, for

parent/guardian, from at lease one year ago.

g. Military orders, for parent/guardian, showing Florida is the

home of record.

C. The Donor or beneficiary must notify the Foundation, upon

assignment, if the qualified beneficiary is permitted to use their

scholarship at an in-state private institution, technical institution or an

out-of-state institution. If the beneficiary is going to attend an in-state

private institution, technical institution or an out-of-state institution, the

Donor or beneficiary must call Customer Service at 1/800/552-4723 and

request a transfer authorization form or download it from the web site.

The Donor or beneficiary must fill-out the authorization form and mail it

back to the address provided on the form.

D. Qualified beneficiaries may begin to receive benefits during the

summer semester of their scheduled matriculation year, provided they

are assigned to their scholarship by February 1.

(7) Identification Cards/Contract Benefits/Exclusions:

A. When a qualified beneficiary is assigned by the Donor to a Florida

Prepaid College Foundation scholarship, an Identification card is issued

to the beneficiary in the spring of each matriculation year and is valid for

one year.

B. The credit hours provided by a scholarship may be used during any

semester of postsecondary undergraduate enrollment. The fees paid for

each credit hour will depend upon the type of Prepaid Plan included in

the scholarship

C. Only one qualified beneficiary is allowed per contract, and a specific

beneficiary can be named in only one contract. However, if a student is

awarded a Florida Prepaid College Foundation Scholarship and a Prepaid

contract was purchased for them by a purchaser (parent, grandparent…),

pursuant to F.S. 1009.97(3)(e), the purchaser may receive a scholarship

refund, pursuant to Rule 19B-11.001(1), which states: …moneys paid for

the purchase of the advance payment contracts shall be returned to the

purchaser in semester installments coinciding with the matriculation by

the beneficiary in an amount not to exceed the redemption value of the

advance payment contract.

D. The contract may be used within three years in advance of the

selected matriculation date with no penalty or additional cost. However,

to utilize a scholarship prior to the selected matriculation date, the

Donor must notify the Foundation, in writing, at the time of assignment.

E. The benefits of a scholarship may be received for up to a ten-year

period after the matriculation date. This ten-year limitation may be

extended upon written request to the Foundation Board. Any time spent

by the qualified beneficiary in the military service tolls the time for

receiving contract benefits under all contract plans. The matriculation

date is the projected college enrollment year of the qualified beneficiary,

based on the information about the qualified beneficiary’s age or grade at

the time the contract was purchased/assigned to the qualified

beneficiary.

F. No graduate program, adult basic, or adult secondary program is

available under this plan.

(8) Transferability

A. The Florida Prepaid Foundation Scholarship is designed to be flexible

and allows beneficiaries to attend the postsecondary institutions of their

choice regardless of the type of plan, unless otherwise indicated by the

Donor at the time the beneficiary is assigned to their scholarship. The

Florida Prepaid College Plan may be used at any eligible educational

institution as defined in s. 529 of the Internal Revenue Code. To view a

list of eligible institutions, visit www.myfloridaprepaid.com.

B. Scholarship benefits will be automatically converted upon receipt of a

valid postsecondary institution invoice based upon the respective tuition

rate at the time of the qualified beneficiaries' actual matriculation date.

For example, if the qualified beneficiary received a 4-year university plan

and will be attending a Florida College for the first two years; if the

Florida College tuition rate is two-thirds of the university rate at the time

of matriculation, three FloridaCollege credit hours will be used to pay for

two university credit hours.

C. Transfer to In-State Independent College or University- In the event

the qualified beneficiary matriculates in an independent college or

university in Florida, upon receipt of a valid invoice, the Foundation will

forward to the institution a value of no more than 15 credit hours per

semester at the in-state public institution rate.

D. Transfer to Out-of-State Schools- In the event the qualified

beneficiary matriculates in an eligible out-of-state community college,

college or university, the Foundation will forward to the out-of-state

institution a value of no more than 15 credit hours per semester at the

in-state public institution rate.

E. Transfer to In-State Vocational-Technical Schools- A qualified

beneficiary of the Florida Prepaid College Foundation may transfer the

benefits of their scholarship an applied technology diploma program or a

vocational certificate program conducted by a Florida College listed in s.

1000.21(3), F.S., or an area technical center operated by a district school

board. The amount of such benefits that may be transferred shall not

exceed the redemption value. For purposes of a transfer to an applied

technology diploma program or vocational certificate program conducted

by a Florida College, the redemption value shall be the amount of tuition

and local fees, respectively, charged by the Florida College at the time of

matriculation. For purposes of a transfer to an area technical center

operated by a district school board, the redemption value shall be the

average amount of tuition and local fees, respectively, charged by the

state universities or Florida Colleges at the time of matriculation. If the

cost of the fees charged by the Florida College or area technical center is

less than the corresponding fees charged by a state postsecondary

education institution, the amount transferred shall not exceed the actual

cost of the fees charged by the Florida College or area technical center.

The amount transferred may only cover the number of semester credit

hours stipulated in the original contract.

(9) Cancellation of Contracts/Terminations:

A. If a qualified beneficiary is assigned to a Florida Prepaid Foundation

Scholarship, and does not use the scholarship, the Donor may remove

the student’s name from the scholarship and assign it to another

qualified beneficiary.

B. The Donor may cancel a Stanley Tate Project STARS scholarship at

any time, upon written/signed notification to the Foundation by the

Donor. The Donor may select one of two options when cancelling the

contract.

1. Traditional Cancellation - The Donor will receive their portion of

the remaining principal balance on the account.

2. Scholarship Reinvestment Opportunity – The Donor will receive the

current redemption value for the remaining hours on the contract to be

used towards purchasing a new scholarship. No funds will be

transferred back to the Donor. All funds will be reinvested into new

scholarships at the current contract prices.

C. The Donor may request cancellation/termination of a Florida Prepaid

College Scholarship if it is determined that a qualified beneficiary has not

complied with the terms/conditions of the Florida Prepaid College

Foundation Board, as stated in the Memorandum of Understanding,

Policies and Procedures, and/or by the agreement between the

Beneficiary and Donor at the time of selection.

D. Involuntary Termination- The Foundation Board may involuntary

terminate a scholarship upon a finding by the Foundation Board, of

fraud in the verification of residency of a qualified beneficiary, or failure

to meet the eligibility requirements, pursuant to the terms and

conditions of the Policies and Procedures of the Florida Prepaid College

Foundation Board.

(10) Refunds:

A. Application fees are non-refundable.

B. Within forty-five days of receipt of Donor’s written

cancellation/termination request to the Foundation Board office, a

refund will be issued to the Donor.

C. Termination of student status after the official drop/add period

eliminates the refund option for that semester.

D. Refunds may exceed the amount paid for the contract pursuant to

19B-11.001(1). F.A.C.