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.
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 section 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.