(a)

1. (1)

   1. (A) A recipient who meets continuing eligibility criteria under this part shall receive a scholarship for one (1) academic year renewable annually until the recipient has earned one hundred twenty (120) semester credit hours.
   2. (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) semester credit hours, if the student is enrolled in a baccalaureate degree program that requires more than one hundred twenty (120) semester credit hours as provided under Arkansas Code § 6-61-232.
2. (2) 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 part.
3. (3) The maximums under this subsection apply to any degree program, regardless of whether or not the degree program requires additional semesters.
4. (4) 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 part.
5. (5) For each eligible term, all required hours for continuing eligibility must be taken at one (1) approved institution.

(b) To maintain eligibility for an Arkansas Academic Challenge Scholarship under this part, a recipient shall:

1. (1) Continue to meet the relevant eligibility requirements of this part while a recipient of a scholarship under this part;

2. (2)

   1. (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.
   2. (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 part immediately forfeits the remainder of the scholarship award for that academic year.

1. (ii) The division shall notify the recipient of the loss of eligibility under this subdivision.

   1. (C) By accepting scholarship funds under this part, 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. (3) 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. (4) Earn a postsecondary grade point average of 2.5 or higher on a 4.0 scale at an approved institution of higher education;

4. (5) Enroll in courses that lead toward a baccalaureate degree or graduate-level or professional degree after attempting the lesser of:

   1. (A) Five (5) semesters; or
   2. (B) The completion of an associate degree program; and

5. (6) Meet any other continuing eligibility criteria established by the division.

   1. (c)
6. (1) A traditional student recipient who loses eligibility for a scholarship may apply as a first-time nontraditional student.

7. (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 part.

   1. (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.