(a) Any individual or family receiving assistance under this act may establish an interest-bearing savings account at a bank or other financial institution for the purpose of paying for tuition, books and incidental expenses at any vocational school or any community college, college or university. Any funds deposited in this account and any interest earned thereon shall be exempt from consideration, subject to Federal approval, in any calculations under any assistance program administered by the department for as long as the funds and interest remain on deposit in the account.

(b) Subject to Federal approval, any amounts withdrawn from the account for the purpose stated in subsection (a) shall be exempt from consideration in any calculations under any assistance program administered by the department. The department shall promulgate regulations to establish penalties for any amounts withdrawn from any accounts for any other purpose.

(c) Any tuition account established and any college savings bond purchased under the provisions of the act of April 3, 1992 (P.L. 28, No. 11),¹ known as the “Tuition Account Program and College Savings Bond Act,” shall be deemed to meet the requirements of this section.