Any student loan program, student grant program, or other financial assistance program established or administered by this state or by a state supported educational institution 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.
However, this section does not apply if any of the following conditions exist:
(1) Federal law requires all or a portion of the amount in an account to be taken into account 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 account in a different manner; or
(3) A specific grant establishing a financial assistance program requires that all or a portion of the amount in an account be taken into account.