(a) The selection committee shall select outstanding rural scholars through a statewide competition.
(b) The selection committee shall make selections based on criteria approved by the department and adopted as a rule of the department.

(c) The selection committee may not use the applicant’s performance on a standardized test as the sole criterion to determine the applicant’s selection as an outstanding rural scholar.
(d) The selection committee shall recommend to the department guidelines to be used by rural communities in the selection of students for nomination and sponsorship as outstanding rural scholars.
(e) An outstanding rural scholar receives public recognition and a certificate of award and is eligible for a forgivable loan under this subchapter.