(1)    Definitions. In this section:
      (d)    An “accredited” institution is an institution accredited by a nationally recognized accrediting agency or by the board of nursing pursuant to s. 441.01 (4), or, if not so accredited, is a nonprofit institution of higher education whose credits are accepted on transfer by not less than 3 institutions which are so accredited, on the same basis as if transferred from an institution so accredited.
      (e)    “Resident student” shall be determined under s. 36.27, so far as applicable.
   (2)   Eligibility. A resident student enrolled at least half-time and registered as a freshman, sophomore, junior or senior in an accredited, nonprofit, post-high school, educational institution in this state shall be eligible for grants under this section for each semester of attendance, but:
      (a)    No student shall be eligible for grants in more than the equivalent of 10 semesters of undergraduate education.
      (b)    A student shall be and shall remain eligible for grants provided the student meets acceptable academic standards prescribed by the student’s institution.
      (d)    No grant shall be awarded to members of religious orders who are pursuing a course of study leading to a degree in theology, divinity or religious education.
      (e)    The board may not make a grant to a student whose name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the student provides to the board a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).
      (f)    No grants may be awarded under this section unless the formula submitted under s. 39.285 (2) is approved or modified by the board under s. 39.285 (1).
   (3)   Basis of grants. The grant to be paid to a resident student enrolled at least half-time and registered as a freshman, sophomore, junior or senior after August 1, 1979, shall be determined as follows:
      (a)    From the total tuition charged the student by the institution, subtract the amount of the resident academic fee charged at the Madison campus of the University of Wisconsin System.
      (b)    Divide the amount determined in par. (a) by the student’s total cost of attending the postsecondary institution.
      (c)    Multiply the percentage calculated in par. (b) times the student’s expected family contribution which has been determined using the same analysis as that used to determine the expected family contribution of students applying for Wisconsin grants under s. 39.435.
      (d)    Subtract the amount determined in par. (c) from the amount determined in par. (a) to arrive at the amount of the grant.
      (e)    The board shall establish criteria for the treatment of financially independent students which are consistent with procedures in pars. (a) to (d).
   (3m)   Grant awards.
39.30(3m)(a) (a) The board shall establish the maximum amount of a grant awarded under this subsection. The board may not establish a maximum amount that exceeds the maximum amount in the previous academic year unless the board determines, to the best of its ability, that in doing so the board will award grants under this paragraph in the current academic year to at least as many students as the board awarded grants to under this paragraph in the previous academic year. Grants under this section may not be less than $250 during any one academic year.
      (b)    The board may not make initial awards of grants under this section for an academic year in an amount that exceeds 122 percent of the amount appropriated under s. 20.235 (1) (b) for the fiscal year in which the grant may be paid.
   (4)   Forms. The board shall prescribe, furnish and make available, at locations in the state convenient to the public, application forms for grants under this section. Upon request, the board shall advise and assist applicants in making out such forms.