Authority: College Scholarship Assistance Program: Title 23, Chapter 4.4, Code of Virginia; Tuition Assistance Grant Program: Title 23, Chapter 4.1, Code of Virginia.

A. Appropriations in this Item are subject to the conditions specified in paragraphs B, C, D, E and G hereof.

B. Those private institutions which participate in the programs provided by the appropriations in this Item shall, upon request by the State Council of Higher Education, submit financial and other information which the Council deems appropriate.

C.1. Out of the amounts for Scholarships the following sums shall be made available for:

a.1) College Scholarship Assistance Program, $4,413,750 from the general fund and $900,465 in federal funds the first year and $4,413,750 from the general fund and $900,465 in federal funds the second year.

2) Any general fund amounts designated for the College Scholarship Assistance Program not required for federal maintenance of effort dollars shall be used for Virginia's discretionary financial aid program. Allocations of the discretionary financial aid funds shall be based on the need-based model approved by the State Council of Higher Education for Virginia.

b. Tuition Assistance Grant Program, $39,891,082 the first year and $40,740,733 the second year from the general fund is designated for undergraduate and graduate students. Of the amounts cited in this paragraph, $1,835,443 from the general fund the first year and $2,685,094 from the general fund the second year provided to increase the average grant award to $2,400 in 2005 and $2,450 in 2006 is contingent upon the passage into law of the provisions contained in Enactment Nos. 2, 3 and 5 of Part 5 of introduced House Bill 30/Senate Bill 30 of the 2004 Session.

c. Virginia Space Grant Consortium Scholarships, $170,000 the first year and $170,000 the second year from the general fund.

2. No amount, or part of an amount, listed for any program specified in paragraph C 1 above shall be expended for any other program in this appropriation except for the amounts identified in C 1 a2).

D. College Scholarship Assistance Program Payments to students out of this appropriation shall not exceed $5,000 each year per undergraduate and graduate student.

E. Tuition Assistance Grant Program

1. Payments to students out of this appropriation shall not exceed $3,000 the first year and $3,000 the second year, to qualified undergraduate, graduate, and medical students attending not-for-profit, independent institutions in accordance with §§ 23-38.12 through 23-38.19, Code of Virginia.

2. Any appropriations in the Tuition Assistance Grant Program which are unexpended at the close of business on June 30, 2004, and June 30, 2005, shall be reappropriated for use in the program in the following year.

3. The private institutions which participate in this program shall, during the spring semester previous to the commencement of a new academic year or as soon as a student is admitted for that year, whichever is later, notify their enrolled and newly admitted Virginia students about the availability of tuition assistance awards under the program. The information provided to students and their parents must include information about the eligibility requirements, the application procedures, and the fact that the amount of the award is an estimate and is not guaranteed. The number of students applying for participation and the funds appropriated for the program determine the amount of the award. Conditions for reduction of award amount and award eligibility are described in this Item and in the regulations issued by the State Council of Higher Education. The institutions shall certify to the Council that such notification has been completed and shall indicate the method by which it was carried out.

4. Institutions participating in this program must submit annually to the Council copies of audited financial statements.

5. To be eligible for a fall or full-year award out of this appropriation, a student's application must have been received by a participating independent college or by the State Council of Higher Education by July 31. Returning students who received the award in the previous year will be prioritized with the July 31 award. Applications for a fall or full-year award received after July 31 but no later than September 14 will be held for consideration if funds are available after July 31 and returning student awards have been made. Applications for spring semester only awards must be received by December 1 and will be considered only if funds remain available.

6. Students at the Virginia Women's Institute for Leadership at Mary Baldwin College are not eligible for Tuition Assistance Grants.

7. No limitations shall be placed on the award of Tuition Assistance Grants other than those set forth herein or in the Code of Virginia.

8. All eligible institutions not previously approved by the State Council of Higher Education to participate in the Tuition Assistance Grant Program shall have received accreditation by a nationally recognized regional accrediting agency, prior to participation in the program.

9. Payments to undergraduate students shall be greater than payments to graduate and medical students and shall be based on a differential established by the State Council of Higher Education for Virginia.

F. Private College Transfer Grants

1. Out of this appropriation, $160,000 the first year and $160,000 the second year from the general fund shall be allocated for a pilot transfer program involving graduates of the Virginia Community College System and Richard Bland College and up to three of the Commonwealth’s independent institutions as determined by the State Council of Higher Education for Virginia.

2. The per-student subsidy for students shall be the lesser of $4,000 or 50 percent of the tuition and required fees at the independent college. This amount shall be deducted from tuition on behalf of the students. Participating students shall not be eligible for Tuition Assistance Grants.

3. The intent of the program is to relieve the pressure of enrollment growth at the public colleges and universities and to provide an additional incentive for students to attend and complete a four-year degree in parts of the state where college participation rates are below the state average. As part of the criteria for evaluating this program, the State Council of Higher Education shall determine and report to the Secretary of Education the number of students participating in this pilot program at the selected independent colleges that are in addition to the number of community college graduates and Richard Bland College graduates that have transferred prior to the 2004-05 academic year.

G. Military Tuition Waivers

1. Out of this appropriation, the expenditure of $1,990,168 the first year from the general fund to offset the difference in tuition and fee charges between resident and nonresident students in conformance with the Code of Virginia § 23-7.4:2 A iii, is contingent upon the passage into law of the provisions contained in Enactment Nos. 2, 3 and 5 of Part 5 of introduced House Bill 30/Senate Bill 30 of the 2004 Session.

2. The Director, Department of Planning and Budget, shall allocate these funds to public institutions of higher education on behalf of students qualifying under this provision based on a recommendation of the Director, State Council of Higher Education for Virginia. By November 1, 2004, the State Council of Higher Education shall make a recommendation on whether students qualifying under this provision shall be counted as resident students for tuition and fee revenue policy purposes.