Subject to the State budget, the Office annually shall determine individuals’ initial eligibility to receive a scholarship. An applicant is eligible for a scholarship if the applicant is: A resident of Maryland; Accepted for admission or enrolled in an eligible institution in: An undergraduate degree program; or A 2-year lower division certificate program in which the coursework is acceptable for transfer credit toward a bachelor’s degree program at an eligible institution; and One of the following: A veteran or active duty member of the United States armed forces who served in: Afghanistan or contiguous air space, as defined in federal military regulations, on or after October 24, 2001, and before a terminal date prescribed by the United States Secretary of Defense; or Iraq or contiguous waters or air space, as defined in federal military regulations, on or after March 19, 2003, and before a terminal date prescribed by the United States Secretary of Defense; A member of a reserve component of the United States armed forces or the Maryland National Guard who was activated as a result of the United States military conflict in: Afghanistan or contiguous air space, as defined in federal military regulations, on or after October 24, 2001, and before a terminal date prescribed by the United States Secretary of Defense; or Iraq or contiguous waters or air space, as defined in federal military regulations, on or after March 19, 2003, and before a terminal date prescribed by the United States Secretary of Defense; or The son, daughter, stepson, stepdaughter, or spouse of an individual described in §B(3)(a) or (b) of this regulation..