CHAPTER 13-55A
NEED-BASED GRANTS
13-55A-1 Finding as to public interest.
13-55A-2 Definitions.
13-55A-3 Students qualified to receive grants.
13-55A-4 Amount of grant.
13-55A-5 Information required to make financial need determination.
13-55A-6 13-55A-6. Repealed by SL 1982, ch 156, § 3
13-55A-7 Grants made annually--Payments--Certification of attendance and academic progress.
13-55A-8 13-55A-8, 13-55A-9. Repealed by SL 1981, ch 159, §§ 9, 10
13-55A-10 Refund to state if student discontinues attendance.
13-55A-11 Executive director to administer program.
13-55A-12 Need-based matching program.
13-55A-12.1 Acceptance and expenditure of state and private funds--Warrants and vouchers.
13-55A-13 Severability of provisions.
13-55A-14 Postsecondary scholarship grant fund created.
13-55A-15 South Dakota freedom scholarship board––Establishment.
13-55A-16 Scholarship--Eligible students.
13-55A-17 Scholarship--Eligible institutions.
13-55A-1. Finding as to public interest.
The South Dakota Legislature finds that providing need-based financial aid to qualified resident students enrolled in participating postsecondary institutions within the state is in the public interest.
Source: SL 1974, ch 141, § 1; SL 2013, ch 92, § 1, eff. Mar. 12, 2013.
13-55A-2. Definitions.
Terms used in §§ 13-55A-2 to 13-55A-14, inclusive, unless the context otherwise requires, mean:
(1) "Eligible institution," an institution of education beyond the high school level, located in South Dakota, which may include all public and private nonprofit and proprietary institutions, including four-year colleges and universities, community and junior colleges, area technical or vocational schools, trade schools, technical colleges, schools of nursing or of the health professions or any institution which is determined by the executive director to be regularly accredited to offer postsecondary educational services by a recognized and appropriate accrediting agency, as determined by the executive director, and which has an agreement with the United States secretary of education for the conduct of any of the programs currently participating in any federal financial assistance program authorized by Title IV of The Higher Education Act of 1965, as amended to January 1, 2010;
(2) "Financial need," the amount of assistance, as determined by a federal department of education by calculating a student's estimated cost of attendance (minus family contribution and additional aid granted) at an eligible institution;
(3) "Qualified student," a resident student who is enrolled in an eligible institution in a course of study on at least a half-time basis, as certified by the institution, and who has established financial need and who is maintaining satisfactory progress toward graduation;
(4) "Resident student," an individual who has been determined by the executive director to be a resident of South Dakota and who is enrolled at an eligible institution;
(5) "Executive director," the executive director of the Board of Regents;
(6) "South Dakota need-based grant," an award by the State of South Dakota to a qualified student under this chapter.
Source: SL 1974, ch 141, § 2; SL 1981, ch 159, § 1; SL 2003, ch 272 (Ex. Ord. 03-1), § 63; SL 2010, ch 104, § 2; SL 2013, ch 92, § 2, eff. Mar. 12, 2013; SL 2020, ch 61, § 52; SL 2021, ch 83, § 5, eff. Mar. 18, 2021.
13-55A-3. Students qualified to receive grants.
A South Dakota need-based grant may be awarded to any qualified South Dakota resident student who is admitted and is in attendance at any eligible institution on at least a half-time basis, and has established financial need.
Source: SL 1974, ch 141, § 3; SL 1981, ch 159, § 2; SL 2010, ch 104, § 3; SL 2013, ch 92, § 3, eff. Mar. 12, 2013.
13-55A-4. Amount of grant.
A participating eligible institution shall award a South Dakota need-based grant to a qualified student for the normal academic year, or its equivalent, from a range of not less than five hundred dollars nor more than two thousand dollars. The institution making the recommendation for each South Dakota need-based grant shall consider any other financial assistance available to the qualified student in relation to the financial assistance available to other qualified students attending that institution and may not exceed the lesser of the unmet need of the qualified student or the amount of qualifying matching aid.
Source: SL 1974, ch 141, § 5; SL 1981, ch 159, § 3; SL 1982, ch 156, § 1; SL 2010, ch 104, § 4; SL 2013, ch 92, § 4, eff. Mar. 12, 2013.
13-55A-5. Information required to make financial need determination.
Each applicant, in accordance with the rules and regulations of the executive director, shall:
(1) Be responsible for providing the information required to make a financial need determination; and
(2) Report promptly to the participating institution any information requested which is necessary to make a proper determination with respect to the student's need determination.
Source: SL 1974, ch 141, § 8 (1) to (3); SL 1981, ch 159, § 4; SL 2003, ch 272 (Ex. Ord. 03-1), § 63; SL 2010, ch 104, § 5; SL 2013, ch 92, § 5, eff. Mar. 12, 2013.
13-55A-7. Grants made annually--Payments--Certification of attendance and academic progress.
A student grant may be made annually for both the fall and spring semesters, summer school sessions, or their equivalents. Payments under the grant shall be allocated equally among the semesters, summer school sessions, or their equivalents, and shall be paid at the beginning of each semester, summer school session, or their equivalents, upon certification by the eligible institution that the student is admitted, in attendance, and is maintaining satisfactory academic progress.
Source: SL 1974, ch 141, § 6; SL 1981, ch 159, § 6.
13-55A-10. Refund to state if student discontinues attendance.
If a recipient of a South Dakota need-based grant discontinues attendance before the end of any semester, summer school session, or their equivalents, the entire amount of any refund due that student from the eligible institution on a pro rata basis, up to the amount of any payment made under the South Dakota need-based grants, shall be paid by the eligible institution to the state.
Source: SL 1974, ch 141, § 6; SL 1981, ch 159, § 7; SL 2010, ch 104, § 6; SL 2013, ch 92, § 6, eff. Mar. 12, 2013.
13-55A-11. Executive director to administer program.
The executive director shall administer this program and shall:
(1) Adopt rules and regulations, pursuant to chapter 1-26, to define tuition and mandatory fees, to define residents for the purposes of this chapter, and to determine the amount of grant funds available to students at each eligible institution. The executive director may provide for proration of funds if the available funds are insufficient to pay all approved grants;
(2) Approve and award South Dakota need-based grants; and
(3) Establish and maintain records required by good accounting practices.
Source: SL 1974, ch 141, § 7; SL 1981, ch 159, § 8; SL 1982, ch 156, § 2; SL 2010, ch 104, § 7; SL 2013, ch 92, § 7, eff. Mar. 12, 2013.
13-55A-12. Need-based matching program.
The Board of Regents is further authorized to establish a South Dakota need-based matching program. Any postsecondary institution eligible to participate in the program established under § 13-55A-1 may apply to the executive director once it has accumulated funding equal to three times the total need-based award. When an award is made, the board may distribute such monies at the rate of one dollar of the sum appropriated in this chapter for every three dollars of private funding held and allocated to need-based financial aid by the participating institution. The Board of Regents may accept gifts, grants, and contributions, public or private, that will facilitate the education of South Dakota students pursuant to this chapter.
Source: SL 1974, ch 141, § 10; SL 2003, ch 272 (Ex. Ord. 03-1), § 63; SL 2010, ch 104, § 8; SL 2013, ch 92, § 8, eff. Mar. 12, 2013.
13-55A-12.1. Acceptance and expenditure of state and private funds--Warrants and vouchers.
The executive director is hereby authorized to accept and expend any funds received from state or private sources as provided for in this chapter, provided such acceptance and expenditure is approved in accordance with § 4-8B-10. Expenditures authorized under this section shall be paid out on warrants drawn by the state auditor on vouchers approved by the executive director.
Source: SL 1978, ch 128, §§ 2, 3; SL 2003, ch 272 (Ex. Ord. 03-1), § 63; SL 2010, ch 104, § 9; SL 2013, ch 92, § 9, eff. Mar. 12, 2013.
13-55A-13. Severability of provisions.
If a part of this chapter is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of this chapter is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.
Source: SL 1974, ch 141, § 11.
13-55A-14. Postsecondary scholarship grant fund created.
There is hereby created in the education enhancement trust fund the South Dakota postsecondary scholarship grant fund for the purpose of providing grants and scholarships through the Board of Regents for the need-based grant program pursuant to chapter 13-55A and the critical teaching needs scholarship program pursuant to §§ 13-55-64 to 13-55-71, inclusive. Any contributions into the education enhancement trust fund not designated for any other purpose shall be allocated to the postsecondary scholarship grant fund. All distributions from the South Dakota postsecondary scholarship grant fund are subject to transfer to the general fund and expenditure of all distributions shall be by an appropriation by the Legislature through the General Appropriations Act or special appropriations acts for the postsecondary scholarship grant programs consistent with the provision of S.D. Const., Art. XII, § 6, and § 4-5-29.2. The board may accept any gifts, contributions, or funds obtained from any other source for the purpose of carrying out the provisions of this section. For each fiscal year, the board may determine the amounts awarded for each scholarship grant program and shall award all available funds from the postsecondary scholarship grant fund annual transfer pursuant to § 4-5-29.2.
Source: SL 2010, ch 104, § 1; SL 2013, ch 92, § 11, eff. Mar. 12, 2013; SL 2016, ch 101, § 1, eff. Mar. 22, 2016.
13-55A-15. South Dakota freedom scholarship board––Establishment.
The agreement required in section 9 of SL 2021, ch 83, must provide for a governing board. The board must consist of five members appointed by the Governor, for a term of five years, except that the initial appointments are for periods of one, two, three, four, and five years. The Governor shall appoint one member as the temporary chair of the board. The board shall elect a chair at its first meeting. A majority of the board must be present personally or electronically to constitute a quorum.
The board shall provide eligible South Dakota students, as described in § 13-55A-16, with a needs-based scholarship to attend an eligible postsecondary institution, as described in § 13-55A-17. The distributable income of the South Dakota Freedom Scholarship endowment must be expended annually to benefit eligible South Dakota students. Any excess earnings or other income to the endowment must be added to the endowment principal. The board shall determine the manner and method of disbursement of the needs-based scholarships, based upon the undergraduate full-time, degree-seeking, South Dakota resident enrollments of each participating, eligible institution, as described in § 13-55A-17.
Source: SL 2021, ch 83, § 6, eff. Mar. 18, 2021; SL 2022, ch 48, § 1.
13-55A-16. Scholarship––Eligible students.
A student is eligible for a South Dakota Freedom Scholarship, pursuant to § 13-55A-15, if the student:
(1) Is a state resident for at least one year prior to application for the scholarship;
(2) Attends an eligible institution in pursuit of a baccalaureate degree;
(3) Establishes financial need, as determined by the eligible institution and the board described in § 13-55A-15;
(4) Commits, in writing, to live and work in this state for a period of three years after graduation, or following military service or graduate education, if applicable;
(5) Maintains a GPA of at least 2.0 while enrolled at an eligible institution; and
(6) Agrees, through a promissory note or other agreement, that failure to comply with this section results in the scholarship being converted to an interest-bearing loan.
A student is eligible to receive a scholarship under this section for five years. If a student fails to complete a baccalaureate degree within five years from the date of initial attendance, the board may convert any amounts awarded to the student into an interest-bearing loan.
Notwithstanding the provisions of this section, the board may temporarily or permanently waive the requirements of this section if factors, as determined by the board, prevent a student from satisfying the requirements in this section.
Source: SL 2021, ch 83, § 7, eff. Mar. 18, 2021; SL 2022, ch 48, § 2.
13-55A-17. Scholarship––Eligible institutions.
For purposes of §§ 13-55A-15 to 13-55A-17, inclusive, an eligible institution is an accredited public or nonpublic nonprofit postsecondary institution, including any tribal college, with a primary physical campus in this state, that:
(1) Elects to participate in the scholarship program provided in §§ 13-55A-15 to 13-55A-17, inclusive; and
(2) Offers a baccalaureate degree.
Source: SL 2021, ch 83, § 8, eff. Mar. 18, 2021; SL 2022, ch 48, § 3.
