Current through Register Vol. 49, No. 9, September, 2024
Arkansas Division of Higher Education Rules Governing
Arkansas Academic Challenge Scholarship Program
(Effective Date: May 2, 2022)
Policy Statement
These rules shall be known as the Arkansas Division of Higher
Education Rules Governing the Arkansas Academic Challenge Scholarship Program.
This policy addresses the student eligibility criteria, method for recipient
selection, continuing eligibility requirements, procedures for making payments
to an approved institution of higher education, and other administrative
procedures necessary for operation of the program.
Applicable Arkansas Code
Ark. Code Ann.
6-85-202 ET. Seq.
Definitions
(1) "Academic Year" means fall, spring, first
and second summer semesters in that order, or as defined by the Division of
Higher Education;
(2) "ACT" means
the ACT administered by ACT, Inc.;
(3) "ACT equivalent" means the Scholastic
Aptitude Test (SAT), COMPASS, ACCUPLACER, Asset or other nationally normed test
that is correlated with the ACT and approved by the Division of Higher
Education for use by institutions of higher education to assess a person's
college readiness;
(4) "Approved
institution of higher education" means an institution of higher education
approved by the Division of Higher Education to participate in the Arkansas
Academic Challenge Scholarship Program and that is:
(a) A state-supported two-year or four-year
college or university;
(b) A
private, nonprofit two-year or four-year college or university with its primary
headquarters located in Arkansas that is eligible to receive Title IV federal
student aid funds; or
(c) An
approved school of nursing, subject to the provisions of §
6-85-213(c);
(5) "Approved school of nursing"
means a school of nursing with its primary headquarter located in Arkansas
that:
(a) Prepares students as registered
nurses;
(b) Grants nursing
diplomas;
(c) Is eligible to
participate in the Higher Education Act of 1965, Title IV federal student aid
programs;
(d) Is approved by the
Arkansas State Board of Nursing;
(e) Has been approved by the Division of
Higher Education as eligible to participate in the Arkansas Academic Challenge
Scholarship Program; and
(f) Is not
a two-year or four-year college or university;
(6) "Arkansas resident" means a natural
person who provides evidence deemed sufficient by the Division of Higher
Education that:
(a) For the twelve-month
period required under basic eligibility requirements the person:
(i) Maintained a permanent home in Arkansas
where the person resides for an average of no less than four (4) days and
nights per calendar week; and
(ii)
Either:
(a) Is an Arkansas registered
voter;
(b) Holds a valid Arkansas
motor vehicle driver's license;
(c)
Receives benefits under an Arkansas public assistance program;
(d) Uses an Arkansas residence address for
federal or state tax purposes; or
(e) Claims Arkansas as a residence to hold
public office or for judicial actions; or
(b) Before the deadline for filing a
scholarship application under this rule the applicant:
(i) Is on active military status;
(ii) Qualifies for in-state tuition and fees
if the student is a:
(1) Veteran who was
honorably discharged or released from a period of not less than ninety (90)
days of active duty in the military, naval, or air service within three (3)
years before the date of enrollment in a program of study;
(2) Dependent of a veteran under subdivision
(1) of this section;
(3) Member of
the armed forces; or
(4) Spouse of
a member of the armed forces and,
(iii) Meets one (1) of the conditions under
subdivision (6)(A)(ii) of this section;
(7) "Continuously enrolled" means:
(a) For a traditional student, he or she
successfully completes at an approved institution of higher education
twenty-seven (27) semester hours in the first academic year as a recipient and,
except while the recipient is enrolled as a parttime student if the recipient
is enrolled in the number of credit hours necessary to complete the recipient's
degree program, successfully completes thirty (30) semester hours each academic
year thereafter;
(b) For a
full-time nontraditional student, he or she successfully completes at an
approved institution of higher education at least fifteen (15) semester hours
of courses in consecutive semesters;
(c) For a part-time nontraditional student,
he or she successfully completes at an approved institution of higher education
at least six (6) semester hours of courses in consecutive semesters;
and
(d) For a student who is
enrolled in a degree plan that has a maximum number of semester hours in a
semester that is less than the requirements of subdivisions (7)(A)-(C) of this
section, he or she successfully completes at an approved institution of higher
education the maximum number of hours required by the degree plan for the
semester;
(8) "Cost of
attendance" means the recognized cost of attendance of an institution of higher
education calculated under rules established by the Division of Higher
Education;
(9) "Full Time Student"
means a student enrolled in at least twenty-seven (27) semester hours the first
academic year and thirty (30) semester hours per academic year thereafter or
the equivalent, as described in this rule, or the equivalent as defined by the
Division of Higher Education;
(10)
"Enrolled" means that the approved institution of higher education where the
student is attending class counts the student as enrolled for the hours claimed
on the last day to add or drop a class at the approved institution of higher
education;
(11) High school grade
point average" means the numbered grade average on a student's high school
transcript calculated:
a. For a traditional
student, using the first seven (7) of the last eight (8) semesters the student
completed prior to graduating high school; or
b. For a nontraditional student, using the
last eight (8) semesters the student completed before graduating high
school;
(12)
"Incarcerated" means a person who has been convicted of a crime and is
imprisoned for that crime or is being held in custody for trial or sentencing.
Incarceration will result in applicant or recipient being ineligible for the
Academic Challenge Scholarship;
(13) "Lawful permanent resident" means a
non-United States citizen who resides in the United States under a legally
recognized and lawfully recorded permanent residence and who may receive state
public benefits under
8
U.S.C. §
1622;
(14) "Qualified certificate program" means a
program:
a. That is offered by an approved
institution of higher education;
b.
For which credit hours are awarded that are creditable toward an associate
degree or baccalaureate degree; and
c. Recognized by the United States Division
of Education for financial aid purposes;
(15) "Recipient" means an applicant awarded a
scholarship funded through the program;
(16) "Semester" means one-half (1/2) of a
traditional academic year at an institution of higher education, or an
equivalent approved by the Division of Higher Education, in which a student
enrolls for not less than:
a. Fifteen (15)
credit hours as a full-time student, except that in the first semester as a
first-time full-time freshman, a traditional student shall enroll in not less
than twelve (12) credit hours; or
b. Six (6) credit hours as a part-time
student;
(17)
"State-supported student financial assistance" means a state-supported
scholarship, grant, tuition waiver, or tuition reimbursement funded with state
funds or net proceeds from the state lottery awarded by:
a. The Division of Higher Education;
or
b. A scholarship or grant
awarded by an institution of higher education in this state in whole or in part
by state funds, including without limitation:
i. Scholarships awarded on the basis of
entrance exam scores or high school academic achievement;
ii. Tuition waivers based on age, military
service, occupation, or other factors;
iii. Out-of-state tuition waivers for
undergraduate students from contiguous states in close proximity to a college
or university;
iv. Scholarships for
transfers from two-year institutions;
v. Performance scholarships for band, musical
performing groups, arts, theater, forensics, and similar activities that are
not awarded on the basis of entrance exam scores or high school academic
achievement; and
vi. Any other
publicly funded program under which students are not charged or are reimbursed
by the institution of higher education for tuition, fees, books, or other costs
of attendance;
(18) "Superscore" means the final composite
score that is calculated according to a combination of the highest individual
section scores across all of the ACT tests taken by an individual.
(19)
(A)
"Traditional student" means a student who:
(i)
Will enter postsecondary education as a full-time first-time freshman on or
before the fall semester of the academic year that begins immediately
following:
(a) The student's graduation from
high school; or
(b) The last day of
the school year:
(1) That would have been the
student's junior or senior year of high school; and
(2) In which the student completes the
requirements for high school graduation and obtains a General Educational
Development certificate instead of receiving a diploma; and
(ii) Remains
continuously enrolled as a full-time student;
(B) "Traditional student" includes a student
who otherwise meets this definition but delays entering postsecondary education
under a scholarship hold approved by the Division of Higher Education.
Procedures
Basic Eligibility Requirements.
The basic requirements for an applicant to be eligible for an
award from the Arkansas
Academic Challenge Scholarship Program are:
(1)
(A) The
applicant has been an Arkansas resident for at least the twelve (12) months
immediately preceding the date the applicant will enroll in an approved
institution of higher education.
(B) If the applicant is less than twenty-one
(21) years of age, either the applicant or a parent or guardian of the
applicant shall have maintained Arkansas residency for at least the twelve (12)
months immediately preceding the date the applicant will enroll in an approved
institution of higher education.
(C)
(i) To
be considered an Arkansas resident, an applicant shall demonstrate residency by
evidence deemed sufficient to the Division of Higher Education.
(ii) Evidence of residency may include
without limitation information provided by the applicant on the Free
Application for Federal Student Aid or a subsequent application required by the
United States Division of Education for federal financial aid.
(D) During the twelve (12) months
immediately preceding the date an applicant will enroll in an approved
institution of higher education if the person for whom the twelvemonth period
is calculated under subdivision (1)(A) or (1)(B) of this section is deployed
outside of Arkansas under military orders, the Division of Higher Education
shall calculate the twelve (12) months by:
(i)
Excluding months of military deployment outside of Arkansas that are within the
twelve (12) months immediately preceding the date the applicant will enroll in
an approved institution of higher education; and
(ii) Including months the person maintained
Arkansas residency immediately preceding the military deployment outside of
Arkansas;
(2)
The applicant is a citizen of the United States or is a lawful permanent
resident;
(3)
(A) The applicant is accepted for admission
as a full-time student or part-time student at
(i) An approved institution of higher
education in a program of study that leads to or is creditable toward:
(a) A baccalaureate degree;
(b) An associate degree;
(c) A certificate from a qualified
certificate program; or
(d) A
graduate-level or professional degree; or
(ii) An approved school of nursing in a
program of study that leads to a nursing diploma under §
6-85-213.
(B) A full-time student shall enroll in at
least twenty-seven (27) semester hours the first academic year and thirty (30)
semester hours per academic year thereafter or the equivalent, as described in
this rule, or the equivalent as defined by the Division of Higher
Education.
(C) part-t me stuent s a
comp ete at east s x()semesterours ut esst ant e minimum number of semester
hours for a full-time student, as defined by the Division of Higher
Education.
(4) The
applicant has not met the maximum continuing education eligibility requirements
under §
6-85-210;
(5) The applicant does not owe a refund on a
federal or state student financial aid grant for higher education;
(6) The applicant is not in default on a
state or federal student financial aid loan for higher education;
(7) The applicant has not borrowed, as
determined by the approved institution of higher education to be attended, in
excess of the annual loan limits under the Federal Family Educational Loan
Program Systems, William D. Ford Federal Direct Loan Program, Income Contingent
Loan Demonstration Program, Stafford Loan Program, Parent Loan for
Undergraduate Students Program, or Supplemental Loan for Students Program in
the same academic year for which the student has applied for assistance under
this rule;
(8) The applicant is not
incarcerated at the time of the application for or during the time the
applicant receives a scholarship under this rule;
(9) The applicant has complied with United
States Selective Service System requirements for registration;
(10) The applicant has completed and
submitted to the United States Division of Education a Free Application for
Federal Student Aid or a subsequent application required by the United States
Division of Education for federal financial aid; and
(11) The applicant certifies that he or she
is drug-free and pledges in writing on the application form to refrain from the
use or abuse of illegal substances in order to become eligible and maintain
eligibility for this program.
Additional Eligibility Requirements for Traditional
Students.
In addition to the basic eligibility requirements an applicant
is eligible as a traditional student if the applicant:
(1) Graduated from an Arkansas public high
school and has a minimum superscore of nineteen (19) on the ACT or the
equivalent score on an ACT equivalent;
(2) Has a disability identified under the
Individuals with Disabilities Education Act,
20 U.S.C. §
1400 et seq., as it existed on July 1, 2009,
and graduated from an Arkansas public high school, and either:
(A) Had a minimum superscore of nineteen (19)
on the ACT or the equvaent score onan equvaent;
(3) Achieved a minimum superscore of nineteen
(19) on the ACT or the equivalent score on an ACT equivalent; and
(A) Graduated from a private high school, an
out-of-state high school, or a home school high school; or
(B) In the year in which the student would
have been a junior or senior in high school, completed the requirements for
high school graduation and obtained a high school equivalency diploma approved
by the Division of Workforce Services instead of receiving a diploma;
or
(4) Meets the
following criteria:
(A) Was enrolled at an
institution of higher education in the immediately preceding academic year as a
full-time, first-time freshman;
(B)
Did not receive a scholarship under this rule as a first-time, full-time
freshman;
(C) Successfully
completed with the equivalent of a minimum letter grade of "D" at least
twenty-seven (27) semester hours of courses as a full-time, first-time
freshman; and
(D) Achieved a
postsecondary grade point average of at least 2.5 on a 4.0 scale as a
full-time, first -time freshman.
Additional eligibility requirements for a nontraditional
student.
In addition to the basic eligibility requirements an applicant
is eligible as a nontraditional student if the applicant meets one (1) of the
following requirements:
(1) If the
applicant has not been enrolled in an approved institution of higher education,
has graduated from an Arkansas public high school, a private high school, an
out-of- state high school, a home school high school, or obtained a high school
equivalency diploma approved by the Division of Workforce Services and had a
minimum superscore of nineteen (19) on the ACT or the equivalent score on an
ACT equivalent; or
(2) If the
applicant has been enrolled in an approved institution of higher education, has
earned a postsecondary grade point average of at least 2.5 on a 4.0 scale.
Continuing eligibility.
(a)
(1)
(A) A recipient who meets continuing
eligibility criteria under this rule shall receive a scholarship for one (1)
academic year renewable annually until the recipient has earned one hundred
twenty (120) semester credit hours.
(B) A recipient may continue to receive a
scholarship after he or she has earned one hundred twenty (120) semester credit
hours, but not more than one hundred thirty (130) semestercre t ours, t e
stuent s enro e na acca aureate egree program t at requires more than one
hundred twenty (120) semester credit hours as provided under §
6-61-232.
(1) A semester in which a student withdraws
or fails to complete the number of credit hours for which the student first
enrolled is counted toward the maximum number of semesters for which the
student may receive a scholarship award under this rule.
(2) The maximums under this subsection apply
to any degree program, regardless of whether or not the degree program requires
additional semesters.
(3) A
recipient may attend summer terms at the student's own expense to earn credit
hours necessary to maintain eligibility for a scholarship under this
rule.
(4) For each eligible term,
all required hours for continuing eligibility must be taken at one approved
institution.
(b) To maintain eligibility for an Arkansas
Academic Challenge Scholarship under this rule, a recipient shall:
(1) Continue to meet the relevant eligibility
requirements of this rule while a recipient of a scholarship under this
rule;
(2)
(A) Meet the satisfactory academic progress
standards required to receive other financial aid at the approved institution
of higher education where the recipient is enrolled, as determined by the
Division of Higher Education in conjunction with the institution of higher
education where the recipient is enrolled.
(B)
(i) A
recipient who does not successfully complete any credit hours toward degree
completion in a semester in which he or she received a scholarship under this
rule immediately forfeits the remainder of the scholarship award for that
academic year.
(ii) The Division
shall notify the recipient of the loss of eligibility under this
subdivision.
(C) By
accepting scholarship funds under this rule, the receiving institution
certifies that students will be enrolled in courses that will meet satisfactory
academic progress standards leading toward a certificate, an associate degree,
a nursing diploma, a baccalaureate degree, or a graduate-level or professional
degree.
(2) If enrolling
in one (1) or more remedial courses, complete all remedial courses required by
the approved institution of higher education by the time the student completes
the first thirty (30) semester hours attempted after receiving the
scholarship;
(3) Earn a
postsecondary grade point average of 2.5 or higher on a 4.0 scale at an
approved institution of higher education;
(4) Enroll in courses that lead toward a
baccalaureate degree or graduate-level or professional degree after attempting
the lesser of:
(A) Five (5) semesters;
or
(B) The completion of an
associate degree program; and
(5) Meet any other continuing eligibility
criteria established by the Division of Higher Education.
(c)
(1) A
traditional student recipient who loses eligibility for a scholarship may apply
as a firsttime nontraditional student.
(2) A recipient under subdivision (c)(1) of
this section who loses eligibility for the nontraditional student scholarship
is not eligible to apply for a scholarship under any eligibility provision of
this rule.
(d) If a
recipient is subject to losing a scholarship under subsection (c) of this
section due to a catastrophic event experienced by the recipient or a family
member of the recipient, the Division may waive the requirements of this
section and determine the appropriate requirements for the recipient to either
retain or regain the scholarship.
Scholarship award amounts.
(a) The General Assembly may use net proceeds
from the state lottery to fund the scholarships awarded under this rule and to
supplement the state-supported student financial assistance that the General
Assembly determines is necessary to meet the state's objective for broadening
and increasing access of Arkansas citizens to higher education.
(b) Net proceeds from the state lottery used
to fund scholarships under this rule shall:
(1) Be used exclusively for the purposes set
out in Arkansas Constitution, Amendment 87, and this rule; and
(2) Supplement and shall not supplant
nonlottery state educational resources.
(c) The scholarships established under this
rule are subject to available funding and do not create for any student an
entitlement to financial assistance to enable the student's attendance at an
approved institution of higher education.
(d)
(1)
(A) Subject to the availability of net
revenue, the scholarship award amount under this rule for an academic year for
a full-time recipient enrolled in a four-year approved institution of higher
education is:
(i) One thousand dollars
($1,000) for a recipient who has earned less than twenty- seven(7)semestercre t
ours;
(ii) Four thousand dollars
($4,000) for a recipient who has earned at least twentyseven (27) semester
credit hours but less than fifty-seven (57) semester credit hours;
(iii) Four thousand dollars ($4,000) for a
recipient who has earned at least fiftyseven (57) semester credit hours but
less than eighty-seven (87) semester credit hours; and
(iv)
(a)
Five thousand dollars ($5,000) for a recipient who has earned at least
eighty-seven (87) semester credit hours but no more than one hundred twenty
(120) semester credit hours, unless the recipient is enrolled in a
baccalaureate degree program that requires more than one hundred (120) semester
credit hours, but not more than one hundred thirty (130) semester credit hours,
as provided under §
6-61-232, then up to the number of
credit hours required to complete the baccalaureate program.
(b) A recipient shall receive no more than
one (1) year of the scholarship provided under subdivision (d)(1)(A)(iv)(a) of
this section unless the recipient is enrolled in a baccalaureate degree program
that requires more than one hundred (120) semester credit hours as provided
under §
6-61-232.
(c)
(1) A
recipient who is eligible to receive the scholarship under subdivision
(d)(1)(A)(iv)(a) of this section may receive the scholarship while enrolled in
a semester as a part-time student.
(2) The scholarship amount for the semester
in which a recipient is enrolled as a part-time student under subdivision
(d)(1)(A)(iv)(c)(1) of this section shall be prorated by the number of credit
hours in which the recipient is enrolled.
(B)
(i) To determine the correct scholarship
award amount based on credit hours, a firsttime recipient shall submit a
current college or university transcript if the first-time recipient has earned
any semester credit hours to the Division of Higher Education no later than a
date determined by the Division prior to the academic year for which the
first-time recipient will receive an initial scholarship award.
(ii) A first-time recipient who does not
submit a transcript to the Division on or before the date determined by the
Division shall receive the award amount under subdivision (d)(1)(A)(i) of this
section.
(C)
(i) An Applicant may elect for the earned
semester credit hours under subdivision (d)(1)(A) of this section to be only
those semester credit hours earned after graduating from high school or
obtaining a high school equivalency diploma approved by the Division of
Workforce Services.
(ii) If the
applicant makes the election under subdivision (d)(1)(C)(i) of this section,
any semester credit hours earned through concurrent credit or any other method
before graduating high school or obtaining a high school equivalency diploma
approved by the Division of Workforce Services shall not be counted as earned
semestercre t ours ort e purposes oeterm n nga rec p ent s sc o ars p award
amount under subdivision (d)(1)(A) of this section.
(2)
(A) The Division shall award an aggregate
amount of scholarship awards to nontraditional students of up to fifteen
million dollars ($15,000,000).
(B)
(i) The Division shall return to the Office
of the Arkansas Lottery the excess funding, if any, for scholarship awards the
Division received under §
23-115-801.
(ii) The office shall deposit any funds
received from the Division under this subdivision (d)(2)(B) into the Lottery
Scholarship Trust Account established under §
23-115-801(b).
(C) Priority for scholarships
awarded to nontraditional students is based on:
(i) The applicant's level of progress toward
completion of a certificate, an associate degree, a nursing diploma, a
baccalaureate degree, or a graduate-level or professional degree; or
(ii) Other criteria established by the
Division of Higher Education.
(3) Subject to the availability of net
revenue, the scholarship award for an academic year for a full-time student
enrolled in one (1) of the following institutions of higher education is one
thousand dollars ($1,000) for the first year and three thousand dollars
($3,000) for the second year:
(A) A two-year
approved institution of higher education;
(B) A branch campus of a four-year approved
institution of higher education; or
(C) An approved school of nursing.
(4) Subject to the availability of
net revenue, the scholarship award amount for a part-time student recipient
shall be:
(A) One-half (1/2) of the award
amount for a full-time student recipient, if the recipient is enrolled in at
least six (6) semester hours but less than nine (9) semester hours;
or
(B) Three-quarters (3/4) of the
award amount for a full-time student recipient, if the recipient is enrolled in
at least nine (9) semester hours but less than the number of hours required for
a full-time student recipient.
(5) A current recipient who maintains
eligibility for the scholarship under this rule shall continue to receive the
scholarship award amount first awarded to the recipient.
(6) The Division shall give priority for a
scholarship award to a full-time or part-time student:
(A) Wo meets t e e g tyrequ rements unert s
ru e; an
(B) Whose parent, by birth
or legal adoption:
(i) Was a resident of the
State of Arkansas at the time that person entered the service of the United
States Armed Forces or whose official residence is in Arkansas; and
(ii) Was a member of the United States Armed
Forces who was killed while performing military duty:
(a) In a status identified under
32
U.S.C. §
101 et seq. or
10
U.S.C. §
101 et seq. as they existed on
January 1, 2011; or
(b) In state
active duty status.
(e) Annually by December 15, the Legislative
Council shall provide to the General Assembly its recommendations for any
changes to the:
(1) Award amounts;
(2) Number or type of scholarships;
and
(3) Eligibility
requirements.
(f) It is
the intent of the General Assembly that in determining award amounts under this
rule, the General Assembly will consider whether sufficient funds will be
available to pay for scholarship awards through the anticipated completion of
the degree or certificate a recipient is seeking.
(g) All awards under this subchapter are
subject to the prohibition under §
6-80-105 against using public funds
in a student financial package in excess of the recognized cost of attendance
at the institution where the student is enrolled.
(h)
(1) If
the Division has less than a sufficient amount from net proceeds from the state
lottery to provide for the scholarship commitments under this rule, the
Division shall give priority for continued financial support under this rule to
a student with continuing eligibility superior to first-time
applicants.
(2) If the funding is
insufficient to fully fund the scholarships for students with continuing
eligibility created under this rule, the Division shall award scholarships
based upon the following criteria to students with continuing eligibility as
follows:
(A) First, to students who have the
highest level of progress toward completion of a certificate, an associate
degree, a baccalaureate degree, or a graduate-level or professional degree, and
who are enrolled in a program of study that is:
i. In an area of critical workforce need as
determined by the Division; or
ii.
In a science, technology, engineering, or mathematics field;
(B) Second, to students who have
the highest level of progress toward completion of a certificate, an associate
degree, a baccalaureate degree, or a graduate-level or professional degree, and
who are enrolled in a program of study other than those listed in subdivision
(h)(2)(A) of this section; and
(C)
Last, in the event funding is insufficient to fully fund students under
subdivision (h)(2)(A) or (h)(2)(B) of this section, to students who have the
highest postsecondary grade point average.
(3)
(A) If
after funding all students with continuing eligibility under this section
funding is insufficient to fund all qualified first-time applicants, the
Division shall award scholarships to first-time applicants in order of priority
based upon the applicants' ACT superscore or ACT-equivalent
superscore.
(B) If after
prioritizing first-time applicants based upon the applicants' ACT or ACT
equivalent scores funding is insufficient to fund all applicants with like ACT
or ACT equivalent scores, the Division shall determine who receives an award by
random drawing.
Payments of Scholarships.
(A) The Arkansas Division of Higher Education
shall disburse scholarships to the approved institution of the student's
choice. The Arkansas Division of Higher Education shall send funds to the
institution via electronic funds transfer or state warrant. After verification
of full-time enrollment, the institution will disburse the scholarship to the
student according to the institution's disbursement procedures. The scholarship
payment will correspond to academic terms, semesters, quarters, or equivalent
time periods at the eligible institution. In no instance may the entire amount
of the scholarship disbursement for an educational year be paid to or on behalf
of such student in advance.
(B)
Transfer of Scholarships to another Approved Institution
A recipient who has received an Academic Challenge Scholarship
may transfer the scholarship to another approved Arkansas institution of higher
education, provided that:
1. The
student notifies the Arkansas Division of Higher Education of the change of
status by October 1 for the fall term and by February 1 for the winter and/or
spring terms by changing the college on the student's ADHE YOUniversal
financial aid account;
(C) Repayment of Scholarships
If the recipient of a scholarship withdraws, drops out, or is
expelled on or after the first day of class of a payment period, the
institution will determine whether the student received an overpayment of
financial aid funds for non-institutional expenses. Overpayment is the
difference between the amount received as cash disbursements and the amount
incurred for non-institutional costs during the portion of the payment period
that the student was actually enrolled. It is the institution's responsibility
to contact students and recover overpayments.
(D) Refunds
The Arkansas Academic Challenge Scholarship Program is entitled
to a refund of the scholarship or loan amount, for that semester, if the
recipient of a scholarship or loan withdraws, drops out, or is expelled on or
after his or her first day of class of the payment period and the situation
falls under the refund policy of the institution. The institution shall pay the
refund to the Arkansas Division of Higher Education.
(E) Overpayment
If the award of an Arkansas Academic Challenge Scholarship
results in an overpayment to the student according to the state law (Arkansas
Code §
6-80-105) governing the stacking of
scholarships, the institution shall follow the ADHE Stacking policy in reducing
the student's financial package to prevent the student from receiving funds
above the federally recognized cost of attendance.
Institutional Responsibilities.
I. College/University Responsibilities
A. Administrative Agreement
The chief executive officer of the eligible institution is
responsible for appointing one representative from the financial aid office to
act as administrator of the Arkansas Academic Challenge Scholarship Program and
to receive all communications, forms, etc. This representative is responsible
for verification, data and compliance with all program rules and regulations.
The institution must comply with all rules and regulations in order to maintain
continued eligibility status.
B. Disbursement Records
The institution shall maintain information on the student
indicating disbursement of scholarship funds.
C. Institutional Verification
The institution shall provide certification of full-time
enrollment and enrollment in courses that will meet satisfactory academic
progress standards, as of the eleventh day of classes, by completing a
Verification Roster each semester after registration. The Verification Roster
is an alphabetical listing by institution of all persons receiving the award
for a given academic term. The certifying official is responsible for
completing the verification rosters each semester or trimester. The Arkansas
Division of Higher Education shall provide electronic Verification Rosters to
the Financial Aid Administrator for each semester or trimester as needed. The
electronic Verification Rosters shall be returne tot e ransas v s on o ger ucat
onyNovem erort e fall term and by March 15 for the spring term. Students who
are enrolled less than full-time in the current term shall not receive
scholarship benefits in that term. The Arkansas Division of Higher Education
shall also provide electronic continuing eligibility rosters to the Financial
Aid Administrator before the end of the spring term. The continuing eligibility
rosters shall be returned to the Arkansas Division of Higher Education no later
than June 1 to ensure that adequate time is provided to notify students of
their status in the program.
D. Deadlines for Disbursement of Funds
The deadline for disbursement of funds is no later than 10 days
after receipt of funds. Any outstanding funds not disbursed by these dates must
be returned to the Arkansas Division of Higher Education. For those students
whose applications are received by ADHE too late to allow disbursement by these
dates, disbursement will be made within 10 working days of receipt of the
verification roster and electronic transfer of funds.
E. Due Diligence
The institution will exercise due diligence in providing
complete, accurate, and timely information as requested by the Arkansas
Division of Higher Education on any Arkansas Academic Challenge Scholarship
recipient or former recipient. In addition, the institution will exercise due
diligence in complying with all the rules and regulations of the Arkansas
Academic Challenge Scholarship Program. The Arkansas Division of Higher
Education shall periodically review the institution's records concerning this
program in an effort to exercise its due diligence requirements as a steward of
state funds.
II.
Recipient's Responsibilities
It is the recipient's responsibility to notify the Arkansas
Division of Higher Education of any change in status within 21 days. This will
include:
* Change in name
* Change in address
* Change in institution
* Change in full-time status (twelve college
credit hours for those students who are in their first fall semester following
high school graduation, fifteen college credit hours for those students who are
beyond the first fall semester following high school graduation)
Failure to notify the Arkansas Division of Higher Education of
a change of status may affect future eligibility.
Scholarship hold - Leave of absence.
(a) The Division of Higher Education may
approve a scholarship hold or a leave of absence for a traditional student for
a period of twenty-four (24) months or less.
(b) The reasons for a scholarship hold or a
leave of absence may include without limitation:
(1) A medical condition of the student or a
member of the student's immediate family that, on the basis of a physician's
good-faith judgment, necessitates the student or the student's immediate family
member to be hospitalized or receive outpatient or homebased medical care or to
recuperate until released by the attending physician;
(2) A personal or family emergency that
requires the student to:
(A) Attend the
funeral of an immediate family member; or
(B) Visit a relative of the student if the
relative has a medical condition in which death is possible or imminent;
or
(3) Military service
under §
6-61-112; or
(4)
(A) A
commitment of twelve (12) to twenty-four (24) months for service in a national
or international humanitarian project sponsored by a nonprofit corporation
organized with a charitable or educational purpose.
(B) The student's commitment shall be
expressed in a written agreement with the nonprofit organization including the
terms of completion for the student's service on the related project.
(C) The Division shall release a scholarship
hold or a leave of absence, whichever is applicable, if the Division determines
that the student did not complete the commitment under the written
agreement.
