Before awarding scholarship assistance with funds provided under this part to any student attending a teacher preparation program, a grantee must--
(a) Ensure that the student understands the terms and conditions that the Secretary has determined must be included in the scholarship agreement;
(b) Have the student and the institution awarding the scholarship execute a scholarship agreement that contains these terms and conditions; and
(c) Establish policies for--
(1) The withdrawal of scholarship support for any student who does not remain in good academic standing; and
(2) Determining when and if re-negotiation of a student's scholarship package over an extended period of time is appropriate. (Approved by the Office of Management and Budget under control number 1840-0753) (Authority: 20 U.S.C. 1024(e))