1.     a.    Each semester, the state board of higher education shall provide to an eligible student a scholarship in an amount not exceeding the tuition charged at the institution in which the student is enrolled, provided the amount does not exceed    the highest undergraduate semester tuition charged at an institution of higher education under the control of the state board of higher education.

b.    Each quarter the state board of higher education shall provide to an eligible student a scholarship in an amount not exceeding the tuition charged per quarter at the institution in which the student is enrolled, provided the amount may not exceed two-thirds of the highest undergraduate semester tuition charged at an institution of higher education under the control of the state board of higher education.

c.    For purposes of this subsection, the rates are calculated using a traditional fall and spring academic year.

2.    The scholarships provided for under this section are conditioned on the student maintaining a 3.5 cumulative grade point average, based on a 4.0 grading system.

3.    Any student eligible for a scholarship under this section is also eligible for a stipend in an amount not exceeding two thousand dollars annually. The state board of higher education may distribute the stipend on a semester or a quarter basis.

4.     a.    A student is not entitled to receive scholarships under this chapter for more than the equivalent of:

(1) Eight semesters of full-time enrollment; or

(2) Twelve quarters of full-time enrollment.

b.    Notwithstanding subdivision a, a student is not entitled to receive a scholarship under this chapter after the student obtains a baccalaureate degree.

5.    The state board of higher education shall forward scholarships and stipends payable under this chapter directly to the institution in which the student is enrolled.