1. (a) Program funds shall be awarded and distributed by the commission in the following manner:

   1. (1) Loan assistance awards shall be distributed directly to eligible applicants in two disbursements during the applicable year: One disbursement shall be made after January 1 and the second disbursement shall be made after June 1. Each eligible applicant shall provide documentation from the employing public K-12 school or school system as proof of employment for the requested semester. If the award amount exceeds the loan balance, the award amount shall be reduced to match the loan balance.
   2. (2) The commission shall determine the necessary procedures for awarding loan assistance if the total awards made to eligible applicants exceeds available funding.

   3. (3) The eligible applicant shall notify the commission in writing of any change in status within 30 days after the change. Failure to notify the commission of a change in status shall affect future eligibility. All of the following constitute a change in status:

      1. a. A change in name.
      2. b. A change in residence.
      3. c. A change in employment status.
   4. (4) To receive loan assistance pursuant to this article, an eligible applicant shall register online with the Comptroller.
2. (b) The requirements of this article are contingent upon available funding for the program.
3. (c) A loan assistance award is considered income by the Internal Revenue Service, and eligible applicants shall be made aware of that fact.
4. (d) An eligible applicant who receives the base support and continues to satisfy employment criteria shall continue to receive an award for the four-year limit.
5. (e) An eligible applicant who receives the supplemental support and continues to satisfy employment criteria shall continue to receive an award for the four-year limit.

(Act 2018-504, §6; Act 2021-389, §1; Act 2022-396, §1; Act 2026-303, §1.)