First Lottery Scholarships For 2013 Awarded To 10,000

The first 10,000 new Arkansas Academic Challenge Scholarship recipients learned of their awards Monday via email, with another 6,000 students likely eligible for the award if they complete their application.

The awarding of the scholarship, which is funded primarily by the state lottery, was announced in a press release from the Arkansas Department of Higher Education Monday.

Under Act 234 passed by the Legislature earlier this year, scholarship recipients who maintain eligibility will receive $2,000 their freshman year, $3,000 their sophomore year, $4,000 their junior year and $5,000 their senior year. Students at two-year schools will receive $2,000 per year.

The scholarships cover eight semesters. Dollars amounts are based on semester hours completed.

Previously, students received $4,500 for attending four-year schools and $2,250 for attending two-year schools. Students who received those awards in previous years will not see a change in their scholarship amounts.

The new system is meant to encourage students who are progressing toward their degrees. A change was deemed necessary because more students have qualified for scholarships and less revenues have been collected from lottery sales than expected. Legislators also were hoping to encourage students to progress toward a degree.

About $133 million was awarded in 2012-13, with lottery receipts totaling $97.5 million. An additional $20 million was added from state general revenue funds, as was intended when the program was set up. The deficit has been covered using part of an $80 million surplus that accumulated when the lottery started, but that surplus has been dwindling.

Students with incomplete applications have until June 1 to submit the Free Application for Federal Student Aid, the YOUniversal scholarship application, which can be found at www.adhe.edu.