(1) No loan guarantee shall be approved, nor any loan, grant, scholarship, recognition award, work-study reimbursement, or other form of financial aid shall be disbursed, under programs authorized by KRS 164.740 to 164.785, to any student who is an inmate or who is incarcerated in a penal institution unless funds have first been provided to all other eligible students who have applied in accordance with the administrative regulations of the authority. (2) The Department of Corrections and any person or organization responsible for the supervision or operation of a penal institution shall cooperate with the authority and participating institutions in providing information to the m to identify applicants who are inmates at or incarcerated in a penal institution.
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