The scholarship may be used only for undergraduate level coursework at approved postsecondary institutions in the state of Washington that meet one of the definitions described later in this section. The postsecondary institution must have current, valid, signed, and approved institutional participation and electronic access agreements in effect with the higher education coordinating board for a recipient to receive the WAVE scholarship while attending the school. A school that meets both requirements is a "participating institution."

A participating institution must meet one of the following definitions:

(1) The Washington public institutions of higher education, including the state research universities, the state regional universities, The Evergreen State College, the state community colleges, and the state technical colleges.

(2) A private, nonprofit educational institution that:

(a) Has a main campus which is permanently situated in this state.

(b) Provides programs of education beyond the high school level leading at least to the baccalaureate degree.

(c) Is accredited by the northwest association of schools and colleges, or another accrediting body approved by the higher education coordinating board as meeting equivalent standards as those institutions accredited by the northwest association.

(3) A private career college or school that has a physical campus located in the state, licensed to operate within the state of Washington by the workforce training and education coordinating board, and offering postsecondary education to prepare persons for a vocation or profession.