(1) An applicant is eligible for the award of a first-year scholarship if the authority finds that the applicant meets all of the following:

  (a) Has resided continuously in this state for the preceding 12 months and is not considered a resident of any other state.

  (b) Has graduated from a high school, or is a student in good standing in a high school who will graduate at the end of the academic year, or an individual who has passed a graduate equivalency examination approved by the state board of education, or, if not a high school graduate, is recommended favorably by an appropriate educational institution as defined in rules promulgated by the authority.

  (c) Except for an applicant for a graduate scholarship, based on the state competitive scholarship examination, shows promise of satisfactorily completing a course of study at an approved postsecondary institution of the applicant’s choice in this state. For an applicant for a graduate scholarship, the authority shall determine the examination standards for eligibility.

  (d) Has complied with this act and the rules promulgated under this act by the authority.

  (e) Is not incarcerated in a corrections institution.

  (2) An applicant who the authority determines is eligible for award of a scholarship under this act shall complete using the scholarship within 1 of the following time frames, as applicable:

  (a) For an applicant enrolled in an eligible postsecondary institution during the 2020 spring term and the 2020-2021 academic year, 11 years after his or her eligibility is determined.

  (b) For any other applicant, 10 years after his or her eligibility is determined.