What are my options if the child enrolls in a college or university but decides to leave school prior to graduating?
There are at least two options. First, Prepaid Plan benefits are valid for 10 years after the beneficiary graduates from high school. Since many students who leave college at some point during their college career later decide to return, it may be a good idea to maintain the contract while the student sorts out his or her postsecondary options and tries to decide whether they will return to college. Second, if the beneficiary decides not to return to college, the contract may be cancelled and a refund requested for the unused portion of the contract. Refunds are available for the payments made to the plan for the unused portion of the contract, minus a cancellation fee of $50 or 50 percent of monies paid in, whichever is less, and any outstanding fees. (This cancellation fee is waived if the contract has been maintained for more than two years.
