Secretary of Education may reserve not more than 20 percent to carry out the Federal supplemental scholarship program under subsection (c). (b) State administered scholarship program (1) In general Each State that receives an allocation under subsection (a)(2) shall use such allocation to carry out a program under which the State awards scholarships, on a competitive basis, to eligible students who demonstrate a commitment to volunteer service work. (2) Application A student who seeks a scholarship under this subsection shall submit an application to the State at such time, in such manner, and containing such information as the State may require. (3) Student eligibility To be eligible to receive a scholarship under this subsection a student shall meet the following criteria: (A) First-time applicant In the case of a first-time applicant for a scholarship under this subsection, the student shall— (i) (I) be enrolled in a secondary school and be in the final year of a program of study leading to a regular high school diploma