AZ HB2042

Amends Arizona Revised Statutes section 15-1877 regarding scholarships and financial aid provisions related to college savings plan accounts.

Clarifies that balances in college savings plan accounts where a student is a designated beneficiary shall not be counted as an asset or income when determining financial need for state student loan programs, grants, or other financial assistance programs.

Applies the provision to state-appropriated financial assistance programs administered by Arizona colleges and universities, including the financial aid trust fund, the leveraging educational assistance program, and the private postsecondary education student financial assistance program.

Provides exceptions to the above provisions when required by federal law, when federal benefits could be lost, or when a specific grant program requires the account balance to be considered differently.