ARIZONA STATE SENATE
Phoenix, Arizona
college savings plan;
financial aid
Changes the manner in which a state student financial assistance program treats the balance in an account where the student is the designated beneficiary, for purposes of determining the income or financial need of the student or parent.
The Arizona Family College Savings Plan was established in 1997 and is overseen by the Arizona Commission for Postsecondary Education. The Arizona Family College Savings Plan allows for a person to open an individual trust account or a savings account for the purpose of paying the qualified higher education expenses of another person. State law exempts the money in the account from taxation when used to pay for qualified higher education expenses of the designated beneficiary (A.R.S. 15-1876).
Currently a student’s balance in an Arizona Family College Savings Plan account is treated as a parent’s income in the determination of financial need. Federal or institution-based programs may take the student’s account balance into consideration when determining the student’s eligibility for such programs.
There is no discernable fiscal impact to the state general fund associated with this bill.
1.
Requires
a state student financial assistance program to treat the balance in a student
beneficiary account as neither an
asset of the student’s parent, nor
any other specified student aid when determining the income, assets, or
financial need of a student or parent.
2.
Contains
technical changes.
3.
Provides
for a general effective date.
Prepared by Senate Staff
March 6, 2001