(b)

1. (1) Each participating institution will select eligible grant recipients for each applicable academic period.
2. (2) In the event the number of eligible students accepted for enrollment at such participating institution exceeds the number of eligible grant recipients for which the division has allocated funds, such participating institution shall have sole discretion in selecting, from all such eligible students, the eligible students to designate as eligible grant recipients.
3. (3) In so selecting, the participating institution shall use the same criteria it uses in determining those students that will be accepted for enrollment at the participating institution.

(c)

1. (1) To remain eligible for continuing participation in the program, the eligible grant recipient must:

   1. (A) Be in good academic standing; and
   2. (B) Make satisfactory academic progress toward timely completion of the participating institution’s prescribed curriculum, as defined by the participating institution, for the applicable academic period in question.
2. (2) The state shall not pay for repeated work.
3. (3) Payment of grants for any eligible grant recipient shall terminate the year the recipient would normally graduate if the recipient had not repeated a portion of the course, unless extra funds are available, and the division approves an extraordinary subsidy.

(d) The division shall make grants according to the allocations made by the division and selections made by the participating institutions in accordance with the following:

1. (1) The contract amount of the grant per eligible grant recipient for Southern Regional Education Board participating institutions shall be the amount approved for such programs by the Board of Control for Southern Regional Education.

2. (2)

   1. (A) For nonparticipating institutions that charge different annual tuition amounts for in-state students and out-of-state students, the contract amount of the grant per eligible grant recipient will be the difference between the annual resident tuition and the annual nonresident tuition.
   2. (B) However, pursuant to Arkansas Code § 6-81-1101(d), should the differential exceed the contract price approved for similar programs by the board in accordance with Arkansas’s contracts with the board, the lesser amount will be paid.
   3. (C) Note. Exceptions may be made for inconsequential differentials.
3. (3) For nonboard-participating institutions which charge the same amount of annual tuition for in-state and out-of-state students, or which charge a minimally different amount of annual tuition for in-state and out-of-state students, and such tuition is extraordinary as determined by the Division of Higher Education, the amount shall be not less than five thousand dollars ($5,000) per student annually.

(e)

1. (1) The participating institution shall apply these sums to the tuition and fees of such students.
2. (2) The institution agrees that the maximum amount charged each student, before credit for the above sum, shall not exceed the amount of tuition and fees charged other students for whom no such credit is given.
3. (3) The division shall have no obligation to make any grants except to the extent funds have been appropriated and funded for the program.