Scholarships and Financial Aid

Plain English Breakdown

The bill was withdrawn, so its provisions did not become law.

Expanding Eligible Institutions for Tennessee Promise Scholarships

This bill changes the list of eligible schools that students can attend with a Tennessee Promise scholarship to include certain career-focused institutions.

What This Bill Does

• Adds NACCAS-accredited institutions in Tennessee as places where students can use their Tennessee Promise scholarships.
• Requires TSAC to check if there are available spots at TCATs before allowing students to use the scholarship at other eligible schools.
• Sets the scholarship amount for these new eligible schools based on the cost of tuition and fees minus any gift aid, similar to what is offered at TCATs.
• Expands the types of programs that qualify for scholarships to include certificates, diplomas, or other credentials.

Who It Names or Affects

• Students who want to use their Tennessee Promise scholarship at a NACCAS-accredited institution in Tennessee.
• TSAC (Tennessee Student Assistance Corporation) which will manage the eligibility of these new institutions and programs.

Terms To Know

NACCAS

National Accrediting Commission of Career Arts and Sciences, an organization that evaluates career-focused schools.

TSAC

Tennessee Student Assistance Corporation, the agency responsible for managing financial aid programs in Tennessee.

Limits and Unknowns

• The bill was withdrawn on January 21, 2026, so it did not become law.
• It is unclear how many students will be affected by this change since it depends on the availability of spots at TCATs and the number of NACCAS-accredited institutions.

Official Summary Text

Under present law, the Tennessee Promise scholarship is available to students who meet certain eligibility criteria and who enroll in an eligible po
stsecondary institution. Present law defines "eligible postsecondary institution" to include:

(1)
A postsecondary institution that was eligible for the Tennessee education lottery scholarship on July 1, 2013, and remains eligible thereafter
; and

(2)
The
William R. Moore College of Technology
.

This bill expands the list of eligible postsecondary institutions for purposes of the Tennessee Promise scholarship to include a
n institution accredited by the National Accrediting Commission of Career Arts and
Sciences (NACCAS) that has its primary campus domiciled in this state
. The scholarship amount will be the same as what is available to recipients who enroll at the
William R. Moore College of Technology
, which is
the average cost of tuition and mandatory
fees at the public two-year postsecondary institutions less all other gift aid
. The scholarship will be available to qualified students enrolling in a NACCAS-accredited institution who pursue a course of study
leading to a certificate, diploma, or other
credential
. T
o be eligible for the scholarship at
a NACCAS-accredited institution
,
this bill requires that
TSAC must first determine that there are no available enrollment slots at a
TCAT
in the county in which the student resides for the student's desire
d program of study. If there are available enrollment slots at a
TCAT
in the county in which the student resides for the student's desired program of study, then the student must be enrolled in a
TCAT
in order to receive the scholarship.

Current Bill Text

SENATE BILL 803
By Massey

HOUSE BILL 738
By Parkinson

HB0738
001344
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 49,
relative to higher education.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-4-708(b)(3), is amended by
adding the following as a new subdivision (C):
(C) An institution accredited by the National Accrediting Commission of Career
Arts and Sciences (NACCAS) that has its primary campus domiciled in this state;
SECTION 2. Tennessee Code Annotated, Section 49-4-708(b)(1), is amended by
adding the language "or an eligible postsecondary institution, as defined in subdivision
(b)(3)(C)," after "Tennessee college of applied technology".
SECTION 3. Tennessee Code Annotated, Section 49-4-708(b)(4), is amended by
designating subdivision (B) as subdivision (C) and adding the following as subdivision (B):
(B) Includes, beginning with the fall semester of the 2025-2026 academic year, a
curriculum of courses leading to a certificate, diploma, or other credential at an eligible
postsecondary institution, as defined in subdivision (b)(3)(C);
SECTION 4. Tennessee Code Annotated, Section 49-4-708(b)(5), is amended by
adding the language "or eligible postsecondary institution, as defined in subdivision (b)(3)(C)"
after "Tennessee college of applied technology".
SECTION 5. Tennessee Code Annotated, Section 49-4-708(c)(3), is amended by
adding the language "or eligible postsecondary institution, as defined in subdivision (b)(3)(C)"
after "Tennessee college of applied technology".

- 2 - 001344

SECTION 6. Tennessee Code Annotated, Section 49-4-708(c), is amended by deleting
subdivisions (5) and (6) and substituting instead the following:
(5) A Tennessee Promise scholarship:
(A) At a Tennessee public two-year postsecondary institution or
Tennessee college of applied technology is the cost of tuition and mandatory
fees at the eligible postsecondary institution attended less all other gift aid. Gift
aid must be credited first to the student's tuition and mandatory fees; or
(B) At an eligible four-year public postsecondary institution or an eligible
private institution, which includes an eligible postsecondary institution, as defined
in subdivision (b)(3)(C), is the average cost of tuition and mandatory fees at the
public two-year postsecondary institutions less all other gift aid. Gift aid must be
credited first to the student's tuition and mandatory fees;
SECTION 7. Tennessee Code Annotated, Section 49-4-708(c), is amended by adding
the following as a new subdivision:
(12) Notwithstanding this subsection (c) to the contrary, to be eligible for the
scholarship at an eligible postsecondary institution, as defined in subdivision (b)(3)(C),
TSAC must first determine that there are no available enrollment slots at a Tennessee
college of applied technology in the county in which the student resides for the student's
desired program of study. If there are available enrollment slots at a Tennessee college
of applied technology in the county in which the student resides for the student's desired
program of study, then the student must be enrolled in a Tennessee college of applied
technology in order to receive the scholarship.
SECTION 8. This act takes effect July 1, 2025, the public welfare requiring it, and
applies to Tennessee Promise scholarships awarded for the 2025-2026 academic year and
each academic year thereafter.