(a) The department by rule shall prescribe criteria for the selection of applicants for grants under this subchapter. The criteria must include consideration of a student’s secondary school scholastic record.
(b) Each semester the department shall distribute a conditional grant to each student selected under the criteria adopted under Subsection (a) on receipt of an enrollment report from the institution enrolling the student and certification from the institution of the amount of tuition and fees for the student.

(c) The amount of a conditional grant is the sum of:
(1) the certified amount of tuition and fees for the student; and
(2) a stipend for each whole calendar month in the semester in an amount determined by the department based on financial need.
(d) The total amount of all conditional grants distributed by the department may not exceed the amount appropriated for the grant program under this subchapter.
(e) The department shall proportionately reduce the amount of each unpaid conditional grant if the amount appropriated for the conditional grants is less than the estimated amount of all unpaid conditional grants.