There is a program of private career school student grants in this State, known as the Jack F. Tolbert Memorial Student Grant Program, that are awarded under this subtitle.

The Office shall administer the program of private career school student financial aid grants.

The Office may not require any competitive examination in determining student eligibility. Each applicant for a private career school student grant shall: Be accepted for admission at an approved private career school; Be enrolled in a full-time program as determined by the Maryland Higher Education Commission; Be a resident of this State; and Demonstrate to the Office financial need.

A private career school student grant may be awarded in $100 increments. However, an award for a single year may not be more than $1,500.

A private career school student grant may be used at a private career school in this State that: Is approved by the Maryland Higher Education Commission; Operates solely within the State; Does not have an outstanding notice of deficiencies under appeal in accordance with the regulations adopted by the Higher Education Commission; Does not have a negative final report under the State Postsecondary Review Program in accordance with 34 C.F.R. § 667.23 as the regulation may be amended; and Has not been referred for review under the State Postsecondary Review Program as a result of its student loan default rates in accordance with 34 C.F.R. § 667.5 as the regulation may be amended. A grant awarded under this subtitle may be used for tuition charges only.

Each recipient of a private career school student grant may hold the grant for 2 years if the student: Continues to be a resident of this State; Continues to be enrolled in a full-time program; In the judgment of the institution, is making satisfactory progress toward a certificate of completion; and Continues to demonstrate a financial need.

The Governor shall include in the annual budget bill an appropriation to the Program in an amount not less than $200,000 for the fiscal year that begins on July 1, 1996 and each subsequent fiscal year.