Arizona Laws 15-1877. Scholarships and financial aid provisions
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 neither an asset of the parent of the designated beneficiary nor as a scholarship, a grant or an asset of the student for determining the student’s or parent’s income, assets or financial need.
Terms Used In Arizona Laws 15-1877
- Account: means an individual trust account in the fund that is established as prescribed in this article. See Arizona Laws 15-1871
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Designated beneficiary: means a person who qualifies as a designated beneficiary under section 529 of the internal revenue code and, except as provided in section 15-1875, subsections P and Q, with respect to an account, who is designated at the time the account is opened as the person whose qualified higher education expenses are expected to be paid from the account or, if this designated beneficiary is replaced in accordance with section 15-1875, subsections D, E and F, the replacement beneficiary. See Arizona Laws 15-1871
- Fund: means AZ529, Arizona's education savings plan trust fund that constitutes a public instrumentality of this state and that is established by section 15-1873. See Arizona Laws 15-1871
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Parent: means the natural or adoptive parent of a child or a person who has custody of a child. See Arizona Laws 15-101
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
B. Subsection A of this section applies to any state appropriated financial assistance program administered by a college or university in this state, including the financial aid trust fund established by section 15-1642 and the leveraging educational assistance program established by section 1203 of the higher education act amendments of 1998 (P.L. 105-244; 112 Stat. 1581; 20 United States Code § 1001).
C. Subsections A and B of this section do not apply if any of the following conditions exists:
1. Federal law requires all or a portion of the amount in an account to be taken into consideration in a different manner.
2. Federal benefits could be lost if all or a portion of the amount in an account is not taken into consideration in a different manner.
3. A specific grant establishing a financial assistance program requires that all or a portion of the amount in an account be taken into consideration.