Terms, defined

For purposes of sections 77-1415 to 77-1430 :

(1) Administrative fund means the Education Savings Plan Administrative Fund created in section 77-1420 ;

(2) Beneficiary means the individual designated by a participation agreement to benefit from advance payments of qualified education expenses on behalf of the beneficiary;

(3) Benefits means the payment of qualified education expenses on behalf of a beneficiary or, in the case of a qualified education loan payment, on behalf of a beneficiary or the sibling of a beneficiary by the Nebraska educational savings plan trust;

(4) Eligible postsecondary educational institution means an institution described in 20 U.S.C. 1088 which is eligible to participate in a program under Title IV of the federal Higher Education Act of 1965;

(5) Expense fund means the Education Savings Plan Expense Fund created in section 77-1420 ;

(6) Nebraska educational savings plan trust means the trust created in section 77-1417 ;

(7) Nonqualified withdrawal refers to (a) a distribution from an account to the extent it is not used to pay the qualified education expenses of the beneficiary or, in the case of a qualified education loan payment, to the extent it is not used to pay the qualified education expenses of the beneficiary or a sibling of the beneficiary or to the extent it does not constitute a rollover to a Roth individual retirement account as permitted by section 529 of the Internal Revenue Code, (b) a qualified rollover permitted by section 529 of the Internal Revenue Code where the funds are transferred to a qualified tuition program sponsored by another state or entity, or (c) until January 1, 2029, a distribution from an account to pay the costs of attending kindergarten through grade twelve;

(8) Participant or account owner means an individual, an individual's legal representative, or any other legal entity authorized to establish a savings account under section 529 of the Internal Revenue Code who has entered into a participation agreement for the advance payment of qualified education expenses on behalf of a beneficiary. For purposes of section 77-2716 , as to contributions by a custodian to a custodial account established pursuant to the Nebraska Uniform Transfers to Minors Act or similar law in another state, which account has been established under a participation agreement, participant includes the parent or guardian of a minor, which parent or guardian is also the custodian of the account;

(9) Participation agreement means an agreement between a participant and the Nebraska educational savings plan trust entered into under sections 77-1415 to 77-1430 ;

(10) Program fund means the Education Savings Plan Program Fund created in section 77-1420 ;

(11) Qualified education loan payment means the payment of principal or interest on a qualified education loan as defined in 26 U.S.C. 221(d), as such section existed on January 1, 2022, of the beneficiary or a sibling of the beneficiary as described in 26 U.S.C. 152(d)(2)(B), as such section existed on January 1, 2022. For purposes of this subdivision, the aggregate total of qualified education loan payments for the qualified education loans of a single beneficiary or sibling shall not exceed ten thousand dollars for all taxable years combined. The aggregate total for qualified education loan payments for the qualified education loans of a sibling of a beneficiary shall be calculated with respect to such sibling and not with respect to the beneficiary and shall include all qualified education loan payments for loans of such sibling, including any qualified education loan payments for which such sibling is the beneficiary or the sibling of a beneficiary;

(12)(a) Qualified education expenses means: