Arkansas Department of Higher Education Rules Governing
The Arkansas Workforce Challenge Scholarship Program
(Effective Date: May 2, 2022)
Policy Statement
These rules shall be known as the Arkansas Division of Higher
Education Rules Governing the Arkansas Workforce Challenge Scholarship. This
policy addresses the student eligibility criteria, method for recipient
selection, continuing eligibility requirements, procedures for making payments
to an approved institution of higher education, and other administrative
procedures necessary for operation of the program.
Applicable Arkansas Code
Ark. Code Ann. §
6-85-302 et seq.
Definitions
(1) "Approved institution of higher
education" means an institution of higher education approved by the Division of
Higher Education to participate in the Arkansas Workforce Challenge Scholarship
Program and that is:
(A) A state-supported
two-year or four-year college or university; or
(B) A private, nonprofit two-year or four
year college or university with its primary headquarters located in Arkansas
that is eligible to receive Title IV federal student aid funds.
(2)
(A) "Certificate program" means a program
that is offered or made available to a student by an approved institution of
higher education that leads to the obtainment of a certification or license,
including without limitation a program operated or sponsored by a third
party.
(B) The credit hours or
contact hours awarded for a certificate program may include credit hours or
contact hours that are not creditable toward an associate or a baccalaureate
degree.
Funding
(1) For an academic year, the following shall
be used to fund Arkansas Workforce Challenge Scholarships under these rules:
(A) Excess funding returned to the Office of
the Arkansas Lottery under Ark. Code Ann. §
6-85-212(d)(2)(B)(i)
from the previous academic year; and
(B) Net proceeds remaining from the previous
academic year after the Office of the Arkansas Lottery:
(i) Transfers the funds requested by the
Division of Higher Education under Ark. Code Ann. §
23-115-801(c)(2);
and
(ii) Deposits the amount
necessary to maintain the Scholarship Shortfall Reserve Trust Account under
Ark. Code Ann. §
23-115-802 in an amount equal to
twenty million dollars ($20,000,000).
(2) A scholarship under these rules shall not
be awarded for an academic year if:
(A) Less
than two hundred fifty thousand dollars ($250,000) is available under
subsection (1) of this section; or
(B) The Division of Higher Education received
a loan from the Scholarship Shortfall Reserve Trust Account under Ark. Code
Ann. §
23-115-802 for the Arkansas
Academic Challenge Scholarship Program -- Part 2, Ark. Code Ann. §
6-85-201 et seq., for the previous
academic year.
(3) Any
funds under subsection (1) of this section that are not disbursed for
scholarships under these rules shall be carried over to the next academic year
to be used for scholarships under these rules.
Procedures
Eligibility Requirements.
(1) A student is eligible to receive an
Arkansas Workforce Challenge Scholarship for an academic year if the student
applies to the Division of Higher Education by a date determined by the
Division of Higher Education preceding the academic year and:
(A) Is an Arkansas resident or, if the
student is less than twenty-one (21) years of age, either a parent of the
student or the student is an Arkansas resident;
(B) Meets either of the following
requirements:
(i) Graduated from a:
(a) Public high school in Arkansas or another
state;
(b) Private high school in
Arkansas or another state; or
(c)
Home school as recognized under Ark. Code Ann. §
6-15-501 et seq. or recognized by
another state; or
(ii)
Received a high school equivalency diploma approved by the Arkansas Division of
Workforce Services or another state;
(C) Is not receiving a scholarship under the
Arkansas Academic Challenge Scholarship Program -- Part 2, Ark. Code Ann.
§
6-85-201 et seq.;
(D) Is accepted for admission in a program of
study at an approved institution of higher education that leads to an associate
degree or a certificate program in one (1) of the following high-demand fields:
(i) Industry;
(ii) Health care; and
(iii) Information technology; and
(E)
(i) Whose program of study or certificate
program will result in the student's being qualified to work in an occupation
identified by the Arkansas Division of Workforce Services under subdivision
(1)(E)(ii)(a) of this section.
(ii)
(a) The Division of Workforce Services shall
provide annually to the Division of Higher Education by March 1 a list that
identifies the five (5) most in-demand occupations in this state in each
high-demand field under subdivision (1)(D) of this section that require the
completion of a program of study that leads to an associate degree or a
certificate program.
(b) The
Division of Workforce Services shall publish on its website the list under
subdivision (1)(E)(ii)(a) of this section and data supporting the
list.
(2) A student who received a scholarship
under these rules and successfully completed a program of study or certificate
program that meets the requirements under subdivision (1)(D) of this section is
eligible to reapply for a scholarship under these rules if the student is
accepted for admission in a different program of study or certificate program
that meets the requirements under subdivision (1)(D) of this section.
(3) A student who received a scholarship
under these rules and does not successfully complete the program of study or
certificate program is eligible to reapply for and receive a scholarship one
(1) time only.
Distribution - Award Amounts.
(1) If funds are available, the Division of
Higher Education ("Division") shall distribute Arkansas Workforce Challenge
Scholarships to all students who meet the eligibility requirements.
(2)
(A) The
Division shall distribute scholarships from the funds available in an equal
amount to every student eligible to receive a scholarship.
(B) Except as provided in subsection (3) of
this section, the maximum scholarship award a student may receive in an
academic year shall be the lesser of:
(i)
Eight hundred dollars ($800); or
(ii)
(a)
The cost of the certificate program or program of study.
(b) The cost of a certificate program or
program of study shall be limited to:
1)
Tuition, fees, or other charges;
2)
Textbooks or other course materials; and
3) Equipment needed for a course.
(C) The
scholarship awards may be used for expenses included in the cost of the
certificate program or program of study.
(D) A scholarship under this section shall be
only for the academic year for which it is awarded.
(3)
(A) If
the division has funds remaining after making the distributions under
subsection (2) of this section, the division shall distribute scholarships to
students for the summer term of the academic year.
(B) If funds are available under subdivision
(3)(A) of this section, a student shall apply for a scholarship for a summer
term by a date determined by the division preceding the summer term.
(C)
(i) The
division shall distribute scholarships for a summer term in the same manner as
under subsection (2) of this section.
(ii) Scholarships for a summer term may be
used in the same manner as under subsection (2) of this section.
(D) A student who received a
scholarship under subsection (2) of this section may also receive a scholarship
for a summer term.
(4)
The division shall disburse scholarship awards on behalf of an eligible student
directly to the approved institution of higher education.
Institutional Responsibilities.
(1) College/University Responsibilities
(A) Administrative Agreement
The chief executive officer of the eligible institution is
responsible for appointing one representative from the financial aid office to
act as administrator of the Arkansas Workforce Challenge Scholarship and to
receive all communications, forms, etc. This representative is responsible for
verification, data and compliance with all program rules and regulations. The
institution must comply with all rules and regulations in order to maintain
continued eligibility status.
(B) Disbursement Records
The institution shall maintain information on the student
indicating disbursement of scholarship funds.
(C) Institutional Verification
The institution shall provide certification of enrollment in
eligible program of study and enrollment in courses that will meet satisfactory
academic progress standards, as of the eleventh day of classes, by completing a
Verification Roster each semester after registration. The Verification Roster
is an alphabetical listing by institution of all persons receiving the award
for a given academic term. The certifying official is responsible for
completing the verification rosters each semester or trimester. The Arkansas
Division of Higher Education shall provide electronic Verification Rosters to
the Financial Aid Administrator for each semester or trimester as needed. The
electronic Verification Rosters shall be returned to the Arkansas Division of
Higher Education by November 1 for the fall term and by March 15 for the spring
term. The Arkansas Division of Higher Education shall also provide electronic
continuing eligibility rosters to the Financial Aid Administrator before the
end of the fall and spring term. The continuing eligibility rosters shall be
returned to the Arkansas Division of Higher Education no later than January 15
based on the Fall semester and June 1 based on the Spring semester to ensure
that adequate time is provided to notify students of their status in the
program.
(D) Deadlines for
Disbursement of Funds
The deadline for disbursement of funds by the eligible
institution is no later than 10 days after receipt of funds. Any outstanding
funds not disbursed by these dates must be returned to the Arkansas Division of
Higher Education. For those students whose applications are received by ADHE
too late to allow disbursement by these dates, disbursement will be made within
10 working days of receipt of the verification roster and electronic transfer
of funds.
(E) Due Diligence
The institution will exercise due diligence in providing
complete, accurate, and timely information as requested by the Arkansas
Division of Higher Education on any Arkansas Workforce Challenge Scholarship
recipient or former recipient. In addition, the institution will exercise due
diligence in complying with all the rules and regulations of the Arkansas
Workforce Challenge Scholarship. The Arkansas Division of Higher Education
shall periodically review the institution's records concerning this program in
an effort to exercise its due diligence requirements as a steward of state
funds.
(F) Agreements
between Institutions
An approved institution of higher education may enter into
agreements with other institutions of higher education, including without
limitation technical institutes, to allow students enrolled in the approved
institution of higher education under these rules to take courses at the other
institutions of higher education.
