ARIZONA STATE SENATE
Phoenix, Arizona
REVISED
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. Clarifies that the bill applies to state appropriated financial assistance programs.
1. Allows the following institutions to administer state financial assistance programs in addition to colleges and universities: The Arizona Financial Aid Trust Program, the Leveraging Educational Assistance Program and the Arizona Private Postsecondary Education Student Financial Assistance Program.
4. Makes technical changes.
5. Provides for a general effective date.
Amendments Adopted by Committee
1.
Clarifies
that the bill applies to state appropriated financial assistance programs.
2.
Allows
the following institutions to administer state financial assistance
programs: The Arizona Financial Aid
Trust Program, the Leveraging Educational Assistance Program and the Arizona
Private Postsecondary Education Student Financial Assistance Program.
Senate Action
ED 3/8/01 DPA 7-0-1-0
Prepared by Senate Staff
March 12, 2001