(a) A prepaid tuition contract remains in effect after the program is terminated if, when the program is terminated, the beneficiary:
(1) has been accepted by or is enrolled in an institution of higher education, a private or independent institution of higher education, a career school or college, or a registered apprenticeship program described by Section 54.619(i); or
(2) is projected to graduate from high school not later than the third anniversary of the date the program is terminated.
(b) A prepaid tuition contract terminates when the program is terminated if the contract does not remain in effect under Subsection (a).