(a) There is established the Tennessee student assistance program, which shall be administered by the Tennessee student assistance corporation, referred to in this part as TSAC, under the following terms and conditions:

(1) TSAC shall make awards of nonrepayable financial assistance, from funds appropriated for that purpose, directly to needy undergraduate students who:

(A) Are residents of this state, as defined by regulations promulgated by the board of regents for the state university and community college system, under the authority of § 49-8-104 where applicable;

(B) Are enrolled or intend to enroll as full-time or part-time students in an institution of postsecondary education in this state that is either:

(i) A public college or university;

(ii) A public vocational or technical institute;

(iii) A nonprofit institution of higher education in this state as defined under regulations promulgated by TSAC; or

(iv) Are enrolled in a private business, trade, or technical school that is located in this state, accredited by a regional accrediting association, the Council on Occupational Education, or the Accrediting Commission of Career Schools and Colleges, and authorized to operate by the Tennessee higher education commission pursuant to the Tennessee Higher Education Authorization Act of 2016, compiled in chapter 7, part 20 of this title. A school that, on July 1, 2016, was accredited by the Accrediting Council for Independent Colleges and Schools and whose students received an award under this part shall remain eligible for the Tennessee student assistance award; provided, that the school receives accreditation by an accrediting agency recognized by the United States department of education, remains accredited by such an accrediting agency, and is authorized to operate by the Tennessee higher education commission. No award under this part shall be made retroactively for any period in which a postsecondary institution has not attained accreditation from an accrediting agency recognized by the United States department of education. If a school is organized as a profit-making entity, it shall comply with the terms and conditions that the TSAC board of directors determines to be necessary to ensure that the availability of assistance under this program to students has not and will not cause an increase in tuition, fees, or other charges assessed by the school;

(C) Have complied with the applicable provisions of parts 2-7 of this chapter and the rules and regulations adopted by TSAC; and

(D) Are not incarcerated;

(2) Awards of student assistance shall be available for residents of the state generally, without regard to county or other area of residence, race, color, creed, sex or national origin or ancestry; and

(3) Students who are citizens of the United States shall receive priority in the making of awards of student assistance.

(b) If subdivision (a)(1)(D) is in conflict with federal law to the extent that subdivision (a)(1)(D) would jeopardize the receipt of federal funds, subdivision (a)(1)(D) is void.