(a) In general
(1) States In order to receive a grant under this division, an eligible entity described in section
1070a–21 (c)(1) of this title shall establish or maintain a financial assistance program that awards scholarships to students in accordance with the requirements of this section. The Secretary shall encourage the eligible entity to ensure that a scholarship provided pursuant to this section is available to an eligible
student for use at any institution of higher education.
(2) Partnerships An eligible entity described in section
1070a–21 (c)(2) of this title may award scholarships to eligible students in accordance with the requirements of this section.
(b) Grant amounts The maximum amount of a scholarship that an eligible
student shall be eligible to receive under this section shall be established by the eligible entity. The minimum amount of the scholarship for each fiscal year shall not be less than the lesser of
(1) 75 percent of the average cost of attendance for an in-State
student, in a 4-year program of instruction, at public institutions of higher education in such State, as determined in accordance with regulations prescribed by the Secretary; or
(2) the maximum Federal Pell Grant funded under section
1070a of this title for such fiscal year.
(c) Relation to other assistance Scholarships provided under this section shall not be considered for the purpose of awarding Federal grant assistance under this subchapter and part C of subchapter I of chapter
34 of title
42, except that in no case shall the total amount of
student financial assistance awarded to a
student under this subchapter and part C of subchapter I of chapter
34 of title
42 exceed such students total cost of attendance.
(d) Eligible students A
student eligible for assistance under this section is a
student who
(1) is less than 22 years old at time of first scholarship award under this section;
(2) receives a secondary
school diploma or its recognized equivalent on or after January 1, 1993;
(3) is enrolled or accepted for enrollment in a program of undergraduate instruction at an institution of higher education that is located within the States boundaries, except that, at the States option, an eligible entity may offer scholarship program portability for recipients who attend institutions of higher education outside such State; and
(4) who participated in the early intervention component required under section
1070a–24 of this title.
(e) Priority
The Secretary shall ensure that each eligible entity places a priority on awarding scholarships to students who will receive a Federal Pell Grant for the academic year for which the scholarship is awarded under this section.
(f) Special rule
An eligible entity may consider students who have successfully participated in programs funded under division 1 of this subpart to have met the requirements of subsection (d)(4) of this section.
