- (a) The Division of Higher Education shall disburse scholarship funds to the qualifying institution of the recipient’s choice via electronic funds transfer or state warrant.
- (b) After verification of enrollment, the institution will disburse the scholarship funds to the student according to the institution's disbursement procedures.
(c)
- (1) The scholarship payment will correspond to academic terms, semesters, quarters, or equivalent time periods at the institution.
- (2) For purposes of scholarship payments, academic terms at the institution may include summer terms, semesters, quarters, or their equivalent.
- (d) In no instance may the entire amount of the scholarship disbursement for an educational year be paid in advance to or on behalf of such student.
- (e) 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.
(f)
- (1) Overpayment is the difference between the amount received as cash disbursements and the amount incurred for noninstitutional costs during the portion of the payment period that the student was actually enrolled.
- (2) It is the institution's responsibility to contact students and recover overpayment or overpayments.
- (3) The institution shall refund the overpayment or overpayments to the division.
- (g) If the award of a Governor’s Higher Education Transition Program Scholarship results in an overpayment to the student per Arkansas Code § 6-80-105, the institution shall follow the division scholarship stacking policy in reducing the student’s financial package so that the student does not receive funds above the federally recognized cost of attendance.