Date student enrolls full time in public elementary or secondary school For Postsecondary students, earlier of: Date student completes postsecondary education Date student turns 22 For a student with a disability, when the student turns 26 For students not described in subparagraphs b or c, earlier of Date when student turns 22 End of 4-year period during which account is not used Return of Funds remaining in ESA before account terminates will be: – Returned to the Secretary of Educations; and Used for the Military ESA program Compulsory Attendance Requirements Military ESA’s satisfy compulsory attendance requirements Special Rule A student with a Military ESA who attends a public school part-time: – May not attend school free of charge Will use funds in the account to pay for child’s cost of attendance Tax Treatment of Accounts In General - Military ESA is exempt from taxation Contributions and Distributions Contributions shall not be included in gross income of individual who Is beneficiary of the account of the parent of that individual Distributions from the account will not be included in gross income Privacy Family Education Rights and Privacy Act applies to qualified education service provider in – same way it applies to an educational agency or institution Fraud Prevention and Reporting Secretary of Education shall establish a website and telephone hotline – for individuals to report fraud. The Secretary will also conduct or contract random quarterly or annual audits of ESA’s Contract Authority Secretary of Education can enter into contracts to carry out this section – Surety Bond In General Qualified education service providers required to put up a surety bond (amount – determined by Secretary of Education) if it receives at least $100,000 in Military ESA funds Retention Secretary determines how surety bond will be retained – Refunds Secretary shall establish a process for service providers to refund accounts in cases of fraud or – nonperformance Rules of Construction –
Date student enrolls full time in public elementary or secondary school For Postsecondary students, earlier of: Date student completes postsecondary education Date student turns 22 For a student with a disability, when the student turns 26 For students not described in subparagraphs b or c, earlier of Date when student turns 22 End of 4-year period during which account is not used Return of – Funds remaining in ESA before account terminates will be: Returned to the Secretary of Educations; and Used for the Military ESA program Compulsory Attendance Requirements Military ESA’s satisfy compulsory attendance requirements Special Rule – A student with a Military ESA who attends a public school part-time: May not attend school free of charge Will use funds in the account to pay for child’s cost of attendance Tax Treatment of Accounts In General - Military ESA is exempt from taxation Contributions and Distributions Contributions shall not be included in gross income of individual who Is beneficiary of the account of the parent of that individual Distributions from the account will not be included in gross income Privacy – Family Education Rights and Privacy Act applies to qualified education service provider in same way it applies to an educational agency or institution Fraud Prevention and Reporting – Secretary of Education shall establish a website and telephone hotline for individuals to report fraud. The Secretary will also conduct or contract random quarterly or annual audits of ESA’s Contract Authority – Secretary of Education can enter into contracts to carry out this section Surety Bond In General – Qualified education service providers required to put up a surety bond (amount determined by Secretary of Education) if it receives at least $100,000 in Military ESA funds Retention – Secretary determines how surety bond will be retained Refunds – Secretary shall establish a process for service providers to refund accounts in cases of fraud or nonperformance Rules of Construction –
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