6 CAR § 391-206 – Payments of scholarships

(a)
1. (1) The Division of Higher Education shall disburse scholarships to the approved institution of the student's choice.
2. (2) The division shall send funds to the institution via electronic funds transfer or state warrant.
3. (3) After verification of full-time enrollment, the institution will disburse the scholarship to the student according to the institution's disbursement procedures.
4. (4) The scholarship payment will correspond to academic terms, semesters, quarters, or equivalent time periods at the eligible institution.
5. (5) 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 the student notifies the division 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 department YOUniversal financial aid account.
(c) Repayment of scholarships.
1. (1) 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 noninstitutional expenses.
2. (2) Overpayment is the difference between the amount received as cash disbursements and the amount incurred for noninsititutional costs during the portion of the payment period that the student was actually enrolled.
3. (3) It is the institution's responsibility to contact students and recover overpayments.
(d) Refunds.
1. (1) 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.
2. (2) The institution shall pay the refund to the division.
(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 Department of Higher Education stacking policy in reducing the student’s financial package to prevent the student from receiving funds above the federally recognized cost of attendance.