Who qualifies for a scholarship

1. 1Age and grade. Your child is eligible to enroll in a public elementary or secondary school. They don't need to attend one. Eligibility ends once they finish 12th grade. (Source: §25F(c)(2)(B))
2. 2Household income. At or below 300% of area median gross income, the same measure the low-income housing credit uses. It's counted for the whole household, not for one earner. (Source: §25F(c)(2)(A); §42)
3. 3State. Your state's governor, or the official state law names, has opted in for the year and listed the SGOs that can award scholarships there. Money raised through a state's list funds students in that state only. See where your state stands (Source: §25F(c)(3); §25F(g))

For a CEN scholarship there's one more step. Your child attends, or will attend, a CEN partner school. Recommend your school if it isn't one yet.

What about pre-K? The list of costs a scholarship can pay is tied to schools that teach kindergarten through 12th grade. So plan on kindergarten as the first year a scholarship can cover, even where public schools offer pre-K. Treasury hasn't addressed pre-K directly. (Source: §530(b)(3)(B))

The limit uses HUD's yearly income tables, set by county or metro area and scaled by household size. So a family in a high-cost city can qualify at an income that would be over the line in a rural county. (Source: HUD FY 2026 MTSP income limits)

Find your county, then the figure for your household size. A bigger household has a higher limit. The eligibility checker does this for you.

A worked example

These are example figures, not your county's. Say the limit for a household of five in your county is $300,000. The Millers, two parents and three children, earned $118,000 in 2026. They're well under, so a 2027 application passes the income test.

The calendar year before you apply. A 2027 application looks at 2026 household income. A 2028 application looks at 2027. The award year itself is never the measured year. (Source: §25F(c)(2)(A))

The date you apply sets the year, not the school year. An application sent in December 2027 looks at 2026 income. One sent in January 2028 looks at 2027. If your income changed a lot between those years, timing can matter. Ask us before you apply, and your school will tell you which window goes with which school year.

The law talks about a household's income but doesn't define household or income. Treasury will. In its 2025 request for comments, Treasury asked whether SGOs should look at the most recent federal return of each household member who has to file, and how to check income for members who don't file. (Source: Notice 2025-70)

Until then, start with everyone who lives with you and income from everyone who earns. When you apply, we'll tell you exactly whose income to include.

The law requires every SGO to verify household income and family size each year. (Source: §25F(d)(1)(F)) Treasury's June 2026 preview describes three ways to do it, and CEN will use them. (Source: Treasury guidance preview, June 2026)

• Documents. Paystubs, tax returns, IRS transcripts or W-2s. SGOs may also check through credit agencies or commercial data sources.
• A needs-based program. Recent proof that someone in your household takes part in a federal, state or tribal needs-based program with an income limit at or below the scholarship's limit.
• Foster care. Foster children meet the income test without a separate check.

The list of programs that count isn't final until Treasury issues its rules. We'll tell you which route fits before you upload anything.

When more eligible students apply than donations can cover, the law sets the order. First, students who received a scholarship from CEN SGO the previous school year. Next, students with a brother or sister who received one. (Source: §25F(d)(1)(D))

After those two groups, the law leaves the order to the SGO. It doesn't rank lower incomes above higher ones inside the limit.

2027 is the first year, and Treasury hasn't said whether earlier scholarships, such as those from a state program, count toward returning-student priority. Don't count on that priority until it does. Expect to apply again each year, since SGOs must check income every year. (Source: §25F(d)(1)(F))

Students with disabilities. Eligible on the same three tests. The law's list of costs includes special needs services for a student with special needs, and Treasury says more guidance on that list is coming. (Source: §530(b)(3)(A); Treasury guidance preview, June 2026) At partner schools, CEN applies scholarships to tuition and fees, so ask your school which services it provides.

Foster and kinship families. Foster children meet the income test automatically. If you're raising a grandchild, niece or nephew outside the foster system, you apply as their household and your household's income counts. Tell us your setup when you apply and we'll tell you what to send.

Divorced, separated or shared custody. The law doesn't say which household counts when a child splits time between two homes, and Treasury hasn't either. Tell us your setup and we'll tell you what to send.

Self-employed or uneven income. If you run a business or farm, or earn gig income, Treasury hasn't said which figure from your return counts. Send your full return with every schedule so we have the whole picture.

Military families and moves. Money raised through one state's list funds students in that state, and Treasury expects SGOs to pick students who live there. (Source: §25F(c)(3); Notice 2025-70) If you move, you apply in the new state. It has to have joined and have a CEN partner school. Tell us as soon as you know about a move.

Homeschool. Treasury expects to treat a home school as a school only where state law treats it as one. (Source: Treasury guidance preview, June 2026) Tennessee includes homeschoolers by statute. (Source: Tennessee Public Chapter 720) CEN funds scholarships at partner schools, so talk to us first.

Families who also donate. You can donate and apply. A donation can't be earmarked for your own child, and CEN makes every award. (Source: §25F(d)(1)(E)) Separately, an SGO can't award a scholarship to a disqualified person, under rules like those for private foundations. That generally covers the SGO's own managers and their families. Treasury will set the details. (Source: §25F(d)(2))

• Using this year's income instead of last calendar year's.
• Leaving someone out of your household size. A smaller household means a lower limit.
• Counting only one parent's income when both earn.
• Assuming you're over the line without checking. The limit is often higher than families expect.
• Waiting for your school to join before doing anything. Recommend it now.