Lottery, Scholarships and Programs - As introduced, allows a student who was ineligible for the Tennessee HOPE scholarship as an entering freshman based on their high school grade point average or composite ACT score to regain their eligibility for the HOPE scholarship as a transfer student if the student meets certain requirements. - Amends TCA Title 49, Chapter 4.

SB 1577 changes Tennessee's HOPE scholarship rules to help students who missed initial eligibility due to high school GPA or ACT scores. It allows these students to qualify as transfer students if they earn an associate degree or certificate at a Tennessee Promise-eligible institution, maintain Tennessee Promise eligibility throughout their first program, achieve a 3.0 GPA, and enroll in a four-year program within six months. The bill directly affects transfer students who previously lost HOPE eligibility as freshmen but meet these specific academic and enrollment requirements. It takes effect for the 2026-2027 academic year and applies to all subsequent years.