(a) All scholarship awards will be based on the applicant's financial need. The minimum scholarship award shall be determined annually by the board of directors of the agency. The maximum scholarship shall be established annually by the board of directors of the agency at a level so as to keep expenditures within the funds available through reenactment of appropriations as provided for under the act of March 28, 1974 (P.L. 228, No. 50),¹ relating to the forward funding of PHEAA grant program and/or from funds appropriated or made available from State, Federal or other sources for grants during any fiscal year.

(b) When, in the agency's opinion, the applicant has or will have the ability to repay all or part of the desired funds or where the annual scholarship allocation has been fully disbursed, the agency may direct the applicant to loan funds. In no case will the total State financial assistance exceed the financial need of the applicant or the annual limits established pursuant to the authority in this act, and those of the act of August 7, 1963 (P.L. 549, No. 290),² referred to as the Pennsylvania Higher Education Assistance Agency Act.