(1) An eligible student who is enrolled in a school district may enroll in, and receive payment by the school district under section 4(5) of all or part of eligible charges for, an eligible course under this act for high school credit or postsecondary credit, or both. At the time an eligible student who is enrolled in a school district enrolls in a postsecondary course under this act, he or she shall designate whether the course is for high school or postsecondary credit, or both, and shall notify both his or her high school and the eligible postsecondary institution of that designation. An eligible student taking more than 1 postsecondary course under this act may make different credit designations under this subsection for different courses.

    (2) Except as otherwise provided in subsection (3), an eligible student who is enrolled in a state approved nonpublic school may enroll in, and receive payment by the department of treasury under section 4(6) of all or part of eligible charges for, an eligible course under this act only for postsecondary credit and may not receive high school credit for the course.

    (3) If an eligible student who is enrolled in a state approved nonpublic school is enrolled in an eligible course that would have been considered a nonessential elective course under Snyder v Charlotte School Dist, 421 Mich 517 (1984), then the eligible student may enroll in, and receive payment by the department of treasury under section 4(6) of all or part of eligible charges for, an eligible course under this act for high school credit or postsecondary credit, or both. At the time an eligible student enrolls under this act in an eligible course described in this subsection, he or she shall designate whether the course is for high school or postsecondary credit, or both, and shall notify both his or her high school and the eligible postsecondary institution of that designation. An eligible student taking more than 1 eligible course described in this subsection under this act may make different credit designations under this subsection for different courses.

    (4) An eligible student shall not audit a postsecondary course in which he or she is enrolled under this act.

    (5) A school district shall grant academic credit to an eligible student enrolled in an eligible course for high school credit under this act if he or she successfully completes the course, as determined by the eligible postsecondary institution. The amount of high school credit granted by a school district for a postsecondary course completed under this act shall be determined by the school district.

    (6) The high school credits granted to an eligible student under this act shall be counted toward the graduation requirements and subject area requirements of the school district. Evidence of successful completion of each course and high school credits granted shall be included in the eligible student's high school record. Subject to 20 USC 1232g, commonly referred to as the family educational rights and privacy act of 1974, an eligible postsecondary institution shall provide the school district with a copy of the eligible student's grade in each course taken for high school credit under this act. Upon the request of an eligible student, his or her high school record and transcript shall also include evidence of successful completion and postsecondary credits granted for a course taken for postsecondary credit under this act. In either case, the eligible student's high school record and transcript shall indicate that the credits were earned at an eligible postsecondary institution and identify the postsecondary institution.

    (7) If a student enrolls in an eligible postsecondary institution after leaving high school, the eligible postsecondary institution, in accordance with institutional policy, shall award postsecondary credit for postsecondary courses successfully completed by that student for high school credit under this act at that eligible postsecondary institution. An eligible postsecondary institution shall not charge a student for credit awarded under this subsection.