1. A. Any student loan program, student grant program, or other financial assistance program established or administered by this state shall treat the balance in an account of which the student is a designated beneficiary as if it were an asset of the parent of the designated beneficiary and not as a scholarship or grant or as an asset of the student for determining a student's or parent's income, assets or financial need.
2. B. Subsection A of this section applies to any financial assistance program administered by a state-supported college or university.

3. C. Subsections A and B of this section shall not apply if any of the following conditions exist:

   1. 1. Federal law requires all or a portion of the amount in an account to be considered in a different manner;
   2. 2. Federal benefits could be lost if all or a portion of the amount in an account is not considered in a different manner; or
   3. 3. A specific grant establishing a financial assistance program requires that all or a portion of the amount in an account be considered as an asset of the student.

Laws 1998, HB 2934, c. 366, § 9, emerg. eff. July 1, 1998.