The purchaser may transfer benefits to an out-of-state college or university accredited by a regional accrediting association which is an "eligible educational institution" within the meaning of the Internal Revenue Code, §135(c)(3). The amount of the transfer shall not exceed the average amount of tuition and required fees for the previous academic year under the plan selected, or the estimated average private tuition and required fees for the previous academic year, as applicable, less a cancellation fee and any other applicable fees. Payments may be transferred each academic term to the out-of-state college or university as necessary to pay for tuition and required fees up to the credit hours limit identified in the prepaid tuition contract. A statement from the out-of-state college or university shall be submitted to the board during each academic term, in a form acceptable to the board.