Heritage Plan: Payout Options

1. Heritage Plan:Payout Options Heritage Education Funds International

2. Module Outline • Objectives • Concepts • Payout option details • Points to remember

3. Objectives • Educate new representatives about the Heritage International Scholarship Trust Plan • Identify payout options available • Review details of options • Payout schedules & sources • Qualifying criteria

4. Concepts • Payout period begins at maturity • Recognized institutions • University, college, online learning, etc.

5. Concepts • Principal • Paid to subscriber or beneficiary on or after maturity date • Educational Assistance Payment (EAP), based on: • Income earned since enrollment • # of qualified students in the year • What, if any, discretionary payments • Year of Eligibility

6. Maturity Date • Usually July 31st of year beneficiary turns 18 • Advance maturity date • if beneficiary starting post-secondary earlier • May require interest adjustment • Delay maturity date • July 31st prior to 21st birthday if scholarship option • July 31st prior to 25th birthday if self-determined option

7. Payout Options

8. Scholarship Option (SO) • Better option for 4 years of post-secondary • 3 Educational Assistance Payments • Multiple programs qualify • Remain in scholarship pool • Potential of discretionary payments • Default option

9. Scholarship Payout Schedule • 1st year – Principal returned • Subsequent year(s) – EAP payment

10. Scholarship EAP • Comprised of • Income from principal investment • Enhancement Fund • Discretionary payment

11. Enhancement Fund • Includes • Income earned on scholarship fund after maturity • Income earned on income from terminated plans • Principal from inactive Plans unclaimed after the deemed maturity date

12. Scholarship Requirements • Program requirements • Recognized institution • Full-time attendance at least six (6) months of year • EAP requirement • Proof of enrollment in the academic year • Receipt of scholarship application by Aug 15 • Late forms may result in loss of scholarship

13. Review Questions • Refer to the course book for review questions

14. Self-Determined Option (SDO) • For programs less than four (4) years • Withdraw from scholarship pool • May continue contributions to 21st year of plan • May leave principal in after maturity

15. Self-Determined EAP • Comprised of • Income from principal investment • Principal & income returned at maturity • No eligibility requirements

16. No School • Options include • Substitution of beneficiary • Withdrawal of principal and interest – when the Self-Determined option is selected

17. Substitution of Beneficiary • Original & new Beneficiary must be under 22 • If both are under 14 • New Beneficiary may be older than original • Any required adjustments made at time of substitution • If original over 14 • New Beneficiary can NOT be older than original • Maturity & eligibility adjusted accordingly

18. Review Questions • Refer to the course book for review questions

19. Points to Remember • Scholarship option • For programs of 4 years • EAP may include discretionary payments • Must enrolled to qualify for an EAP

20. Points to Remember • Self-determined option • For programs of less than 4 years • No longer part of pool • No set payout schedule or eligibility requirements

21. Points to Remember • No school • Substitution of beneficiary • Withdrawal of principal & interest, if Self-Determined

22. Thank You