Contract Term

Contract Term. In general, benefits under an MPACT Contract may be received for up to an eight (8) year period after the Projected College Entrance Date of the Qualified Beneficiary. If the Beneficiary, however, is an accelerated student, the MPACT Contract benefits may be used for up to eight (8) years after the actual college entrance date of the Qualified Beneficiary who is an accelerated student. Prior to the expiration of the eight (8) year benefit period, as long as an MPACT Contract has not been Terminated or Cancelled and is not in default, a Purchaser may request an extension of the time allowed to exercise rights under the Contract only if the Beneficiary has not been able to fully utilize benefits due to active service in a branch of the United States Military. If approved, the extension of benefits will not exceed the number of years of military service. The Purchaser must submit a written request at least one hundred and eighty (180) days prior to the expiration of the eight (8) year benefit period, the Contract must have thirty two (32) semester hours remaining in benefits, and the Purchaser must pay a non-refundable renewal fee equal to 5% of the original Contract price, assessed at the time of request for extension of the Contract term. If the request is granted, an Actuarial Assessment may be assessed to protect the actuarial soundness of the Trust Fund. The Contract extension will be valid for one (1)year from the Contract expiration date. If an MPACT Contract has not been Cancelled or Terminated, and if the Qualified Beneficiary’s rights under the Contract have not been fully exercised within eight (8) years from the Projected College Date of the Qualified Beneficiary, or from the actual college entrance date of an accelerated student, all Contract rights are Terminated, and no refunds are available. The money will revert to the Trust Fund.