Higher education: financial aid; Michigan education trust act; modify. Amends secs. 4 & 8 of 1986 PA 316 (MCL 390.1424 & 390.1428).

This bill modifies the Michigan Education Trust Act to update definitions and refund rules for advance tuition payment contracts. It clarifies terms such as "qualified beneficiary" and "state institution of higher education," while also adjusting the conditions under which these contracts can be terminated. The legislation outlines specific scenarios for refunds, including situations where a student dies, is not admitted to a state school, or chooses to attend an independent college or community college. Additionally, it establishes guidelines for how refunds are calculated and transferred to other eligible educational institutions if the original contract is ended.