(1) 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) Subsection (1) of this section applies to any financial assistance program administered by a state-supported college or university.
(3) Subsections (1) and (2) of this section do not apply if any of the following conditions exist: Federal law requires all or a portion of the amount in an account to be taken into account in a different manner;
(4) Federal benefits could be lost if all or a portion of the amount in an account is not taken into account in a different manner;
(5) A specific grant establishing a financial assistance program requires that all or a portion of the amount in an account be taken into account.