At this time, in order to change a Student's grade level, the Smart Tuition Contract has to be deleted. Once the Smart Tuition Contract is deleted, you will be able to change the Student's grade level and a regular onBoard contract may be issued.
It is not necessary to generate another Smart Tuition contract. The family account will have already been created and SSO for the users enabled. If a second Smart contract is assigned, the responsible signer will not be able to complete the contract without an error letting them know that they already exist in Smart. In this scenario, an admissions manager would need to manually mark the contract as returned.
Schools at this time are unable to delete Smart Tuition Contracts. You will need to submit a ticket to Support to request the Smart Tuition Contract be deleted.