Annual Empire State scholarships of excellence payments shall be in an amount of up to $2,000 in each academic year, but shall not exceed the recipient's cost of attendance at the institution attended. Cost of attendance shall mean tuition, required fees, books, transportation and room and board, as those terms are defined in section 2200.2 of this Title. The cost of attendance shall be reduced, however, by the amount the recipient shall receive or would be entitled to receive as a Pell grant pursuant to section 1070-a of title 20 of the United States Code.

In addition to the certification procedures set forth in section 2205.3 of this Title, an institution shall report to the corporation the recipient's cost of attendance as defined herein, reduced by the amount the recipient shall receive as a Pell grant pursuant to section 1070-a of title 20 of the United States Code. In the event the recipient is otherwise entitled to such a Pell grant, but does not receive a grant due to a failure by the recipient to apply, the institution shall reduce the recipient's cost of attendance by that amount the recipient would be entitled to receive had he or she applied for the grant.