(1) The amount of a Michigan reconnect grant awarded to a Michigan reconnect grant student under this act must not exceed the following, as applicable:

    (a) For a student attending an eligible institution who is eligible for that institution's in-district tuition rate, the student's tuition and mandatory fees minus the student's gift aid.

    (b) For a student attending an eligible institution who is not eligible for that institution's in-district tuition rate, the cost of tuition at the in-district resident rate and mandatory fees.

    (2) If awarded, Michigan reconnect grant money must be paid to the eligible institution for credit to the student's account.