(a) A member who is a public school teacher or administrator and takes a leave of absence from a school in order to obtain an advanced degree at an institution of higher learning or to fulfill the requirements of a scholarship or grant shall receive credited service for the time of the member’s actual enrollment in the institution if the member:

1. (1) Applies for advanced degree service credit by submitting to the Arkansas Teacher Retirement System a completed application form approved by the system; and
2. (2) Pays the actuarial equivalent of the member’s benefits to the system for each year of service credit being purchased.

(b) At the member’s request, a member’s payment for advanced degree service credit shall be refunded by the system if the:

1. (1) Member ceased to be an active member before the advanced degree service credit is established as credited service in the system; or
2. (2) Advanced degree service credit is not otherwise used to establish the member’s eligibility for retirement under the system.