§ 6-80-105 - Student financial aid -- Scholarship stacking. - Arkansas Statutes

6-80-105. Student financial aid -- Scholarship stacking.

(a) As used in this section:

(1) "Cost of attendance" means the recognized cost of attendance of an institution of higher education calculated under rules established by the Department of Higher Education;

(2) "Federal aid" means scholarships or grants awarded to a student as a result of the Free Application for Federal Student Aid, excluding the Pell grant;

(3) "Other aid" means scholarships, grants, tuition waivers, or housing waivers awarded to a student from postsecondary institutions or private sources;

(4) "State aid" means scholarships or grants awarded to a student from public funds, including without limitation the Arkansas Academic Challenge Scholarship under 6-85-201 et seq., the Department of Higher Education scholarship and grant programs, state general revenues, tuition, and local tax revenue; and

(5) "Student aid package" means federal aid, state aid, and other aid a student receives for postsecondary education expenses.

(b) (1) A postsecondary institution shall not award state aid in a student aid package in excess of the cost of attendance at the institution where the student enrolls.

(2) For the purpose of stacking scholarships in a student's student aid package, the Arkansas Academic Challenge Scholarship under 6-85-201 et seq. shall be reduced or returned first.

(c) A postsecondary institution shall report to the department the total amount of federal aid, state aid, and other aid a student receives if the student receives an award from a department scholarship or grant program, including the Arkansas Academic Challenge Scholarship under 6-85-201 et seq.

(d) (1) When a student receives a student aid package that includes state aid and the student aid package exceeds the cost of attendance, the postsecondary institution shall repay state aid in the amount exceeding the cost of attendance, starting with state aid received under the Arkansas Academic Challenge Scholarship under 6-85-201 et seq.

(2) The department shall credit the excess state aid funds to the appropriate department fund or trust account.