(a) Payment of scholarships.

1. (1) Funds will be disbursed to the approved institution of the Governor’s Scholars choice by state warrant.
2. (2) After verification of full-time enrollment, the institution shall disburse the Governor's Scholars Award to the student according to the individual institution's disbursement procedures.
3. (3) Disbursement of the Governor's Scholars Award shall correspond with the institution's fall, spring, and summer academic terms (semesters, trimesters, quarters, or equivalent time periods).
4. (4) In no instance may the entire amount of the award for an educational year be paid to or on behalf of the student in advance.

(b) Transfer to another institution of higher education.

1. (1) A student who receives a Governor's Scholars Award may transfer to another eligible Arkansas institution of higher education, provided the recipient notifies the Division of Higher Education, in writing, of the change of institution by October 1 for the fall term, by February 1 for the winter and spring terms, and by June 1 for summer terms.
2. (2) Failure to notify the division by the specified deadlines shall result in the loss of the Governor's Scholars Award for the term in question.

(c) Scholarship hold.

1. (1) The division may approve a scholarship hold for a student for a period of twenty-four (24) months or less for the following reasons without limitation:

   1. (A) 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 that the student or the student's immediate family member be hospitalized or receive outpatient or home-based medical care or recuperate until released by the attending physician;
   2. (B) A personal or family emergency that requires the student to:

(i) Attend the funeral of an immediate family member; or

1. (ii) Visit a relative of the student if the relative has a medical condition in which death is possible or imminent;

   1. (C) Military service under Arkansas Code § 6-61-112; or

   2. (D)

      1. (i) 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.
      2. (ii) 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.
      3. (iii) The division shall release a scholarship hold if the division determines that the student did not complete the commitment under the written agreement.

2. (2)

   1. (A) The recipient must submit a written request for a scholarship hold.
   2. (B) The petition shall give the reason for withdrawal and be supported by documentation.
   3. (C) In the absence of extraordinary circumstances, the award will be revoked if the recipient fails to enroll full-time in an eligible institution in Arkansas, and the division receives neither notification of transfer of the scholarship to another eligible institution, nor a petition for withdrawal by the recipient by October 1 for the fall term, February 1 for the winter and/or spring terms, and by June 1 for summer terms.

   4. (D) At the discretion of the division, the award will not be revoked if it is determined by the division that extraordinary circumstances prevented the student from notifying the division by the required dates.

      1. (d) Cancellation of Governor’s Distinguished Scholar Award.

3. (1) The Governor's Scholars Award and the Governor’s Distinguished Scholar Award shall be terminated for any one (1) of the following reasons:

   1. (A) Failure to maintain a minimum 3.0 cumulative college grade point average (Governor’s Scholars) or a minimum 3.25 cumulative college grade point average (Governor’s Distinguished Scholars) on a 4.0 scale and successfully complete and pass a minimum of at least:

      1. (i) Twenty-seven (27) credit hours the first academic year; and
      2. (ii) Thirty (30) hours each academic year thereafter;
   2. (B) Failure to complete a baccalaureate degree within five (5) years from initial college entrance;
   3. (C) Failure to petition the division for a temporary withdrawal for two (2) consecutive academic terms; or
   4. (D) Failure to enroll as a full-time student in an eligible Arkansas college or university after a two-year temporary withdrawal.
4. (2) Failure by the Governor's Scholar to provide written notification to the division of a change in status, such as a transfer to another eligible institution, change in address, change in name, etc., before appropriate deadline dates shall result in cancellation of the Governor's Scholars Award for the term in question.

(e) Refunds and overpayments.

1. (1) If a Governor's Scholar withdraws from an eligible institution, and under the refund policy of that institution the student is entitled to a refund of any tuition, fees, or other changes, the institution shall pay the refund amount in question to the division.
2. (2) Acts 1999, No. 1180, states that students who receive scholarships from public funds may not use those funds in a financial aid package to exceed the recognized cost of attendance at the institution where the student enrolls.
3. (3) The institution must follow division policy in repaying public funds in the amount exceeding the total cost of attendance for any student who receives public funds in a financial aid package above the cost of attendance.