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Pursuant to 20 USCS § 1087vv (f) [Title 20. Education; Chapter 28. Higher Education Resources and Student Assistance; Student Assistance; Need Analysis], the term assets means:
“(1) cash on hand, including the amount in checking and savings accounts, time deposits, money market funds, trusts, stocks, bonds, other securities, mutual funds, tax shelters, qualified education benefits (except as provided in paragraph (3)), and the net value of real estate, income producing property, and business and farm assets.
(2) With respect to determinations of need under this title, other than for subpart 4 of part A [20 USCS §§ 1070c et seq.], the term "assets" shall not include the net value of--
(A) the family's principal place of residence;
(B) a family farm on which the family resides; or
(C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family.
(3) A qualified education benefit shall be considered an asset of--
(A) the student if the student is an independent student; or
(B) the parent if the student is a dependent student, regardless of whether the owner of the account is the student or the parent.
(4) In determining the value of assets in a determination of need under this title (other than for subpart 4 of part A [20 USCS §§ 1070c et seq.]), the value of a qualified education benefit shall be--
(A) the refund value of any tuition credits or certificates purchased under a qualified education benefit; and
(B) in the case of a program in which contributions are made to an account that is established for the purpose of meeting the qualified higher education expenses of the designated beneficiary of the account, the current balance of such account.
(5) In this subsection:
(A) The term "qualified education benefit" means--
(i) a qualified tuition program (as defined in section 529(b)(1)(A) of the Internal Revenue Code of 1986 [26 USCS § 529(b)(1)(A)]) or other prepaid tuition plan offered by a State; and
(ii) a Coverdell education savings account (as defined in section 530(b)(1) of the Internal Revenue Code of 1986 [26 USCS § 530(b)(1)]).
(B) The term "qualified higher education expenses" has the meaning given the term in section 529(e) of the Internal Revenue Code of 1986 [26 USCS § 529(e)].”