In determining which applicants are least able to provide funds for the cost of education under section 8 of this chapter, the commission may not consider principal or interest, including an original issue discount that qualifies as interest excludable from gross income for federal income tax purposes, on a bond that is:

1. (1) issued by a:

   1. (A) public body corporate and politic of the state; or

   2. (B) state educational institution;

      designated by the governor as a college savings bond and purchased after December 31, 1989; or

2. (2) a United States savings bond purchased after December 31, 1989, if the interest is claimed as exempt from federal taxation under Section 135 of the Internal Revenue Code.

   [Pre-2007 Higher Education Recodification Citation: 20-12-21-7.1.]

As added by P.L.2-2007, SEC.253.