# COMAR Title 13B — Maryland Higher Education Commission

## Subtitle 08 — Financial Aid

### Chapter 21 — Maryland Community College Promise Scholarship Program

**Authority:** Education Article, §§11-105 and 18-204 and Title 18, Subtitle 36, Annotated Code of Maryland

**Administrative History:** Effective date: March 25, 2019 (46:6 Md. R. 347)

**Administrative History:** Regulation .05A, B amended effective November 4, 2019 (46:22 Md. R. 977)

**Administrative History:** Regulation .08C amended effective November 4, 2019 (46:22 Md. R. 977)

**Administrative History:** Regulation .09A amended effective November 4, 2019 (46:22 Md. R. 977)

**Administrative History:** Regulation .12 amended effective November 4, 2019 (46:22 Md. R. 977)

**Administrative History:** Regulation .17B amended effective November 4, 2019 (46:22 Md. R. 977)

**Administrative History:** Regulations .01—.22 repealed under Maryland Community College Promise Scholarships and Regulations .01— .09 adopted under Maryland Community College Promise Scholarship Program effective November 25, 2024 (51:23 Md. R. 1037)

#### Regulation .01 Purpose.

*COMAR 13B.08.21.01*

A. The purpose of the Maryland Community College Promise Scholarship Program is to provide tuition assistance to students enrolling part-time or full-time in a community college who are seeking:

  (1) An associate’s degree;

  (2) A lower division certificate;

  (3) A noncredit vocational certificate or completion of a noncredit vocational program;

  (4) Completion of a sequence of credit or noncredit courses leading to licensure or certification; or

  (5) Completion of a Registered Apprenticeship in the State.

B. The purpose of these regulations is to set forth policies and procedures for the administration of the Maryland Community College Promise Scholarship Program under Education Article, Title 18, Subtitle 36, Annotated Code of Maryland.

#### Regulation .02 Definitions.

*COMAR 13B.08.21.02*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Annual adjusted gross income” means the total of the combined adjusted gross income, as reported on the federal or State income tax return for the most recent tax year, of:

    (a) The applicant, if the applicant is independent;

    (b) The applicant and the applicant’s parents, if the applicant is a dependent; or

    (c) The applicant and the applicant’s spouse, if the applicant is married.

  (2) “Commission” means the Maryland Higher Education Commission.

  (3) “County” means a county of the State or Baltimore City.

  (4) Extenuating Circumstances.

    (a) “Extenuating circumstances” mean a documented, extraordinary event or condition that prevents a recipient from fulfilling a Scholarship requirement.

    (b) “Extenuating circumstances” includes, but is not limited to, the following events or conditions, to the extent that the event or condition prevents the recipient from fulfilling a Scholarship requirement:

      (i) Disability;

      (ii) Serious illness of the student;

      (iii) Pregnancy or adoption;

      (iv) Extreme financial hardship of the student or student’s immediate family;

      (v) Fulfillment of military service; or

      (vi) Serious illness or death of an immediate family member.

  (5) “FAFSA” means the Free Application for Federal Student Aid.

  (6) “Federal verification” means the process prescribed by the U.S. Department of Education to verify that information provided on the FAFSA is accurate.

  (7) “GPA” means cumulative grade point average.

  (8) “Institutional Student Information Report” or “ISIR” means an electronic record produced by the Central Processing System of the U.S. Department of Education that provides institutions with processed application and correction information.

  (9) “MDCAPS” means the Maryland College Aid Processing System maintained by the Commission.

  (10) “Most recent tax year” means the tax year 2 years prior to the beginning of the State fiscal year in which the award will be made.

  (11) “Non-loan aid” means any student financial aid scholarships or grants applied to the student’s tuition and fee charges, excluding Title IV federal work-study.

  (12) “Registered apprenticeship” means an apprenticeship program meeting the standards of and registered with the Maryland Department of Labor.

  (13) “Satisfactory academic progress” means the academic standards established by the community college to determine whether a student may continue to receive student financial aid.

  (14) “Tuition” has the meaning stated in Education Article, §18-3601, Annotated Code of Maryland.

#### Regulation .03 Program Administration.

*COMAR 13B.08.21.03*

A. The Scholarship Program shall be jointly administered by the Commission and each community college in the State.

B. Responsibilities of Commission. The Commission shall:

  (1) Annually allocate funding for the Scholarship Program to each community college in the State in accordance with Education Article, Title 18, Subtitle 36, Annotated Code of Maryland, and this chapter;

  (2) Identify students who are potentially eligible for the Scholarship based on information from the FAFSA or MHEC OneApp and provide a list of potentially eligible students to the community colleges through MDCAPS;

  (3) Review audit reports to ensure that each community college has verified eligibility and awarded funds as set forth in Education Article, Title 18, Subtitle 36, Annotated Code of Maryland, and this chapter;

  (4) Collect payments from community colleges that have made awards in error and transfer the collected funds to the Need-based Student Financial Assistance Fund under Education Article, §18-107, Annotated Code of Maryland;

  (5) Annually reconcile allocated funds, collect unused funds from community colleges, and transfer the collected funds to the Need-based Student Financial Assistance Fund under Education Article, §18-107, Annotated Code of Maryland;

  (6) Publicize the Scholarship Program throughout Maryland, including, but not limited to, posting information about the Scholarship on the Commission website and providing information to high school counselors; and

  (7) Annually report information regarding the Scholarship to the General Assembly as set forth in Education Article, Title 18, Subtitle 36, Annotated Code of Maryland.

C. Responsibilities of Community Colleges. Each community college in the State shall:

  (1) Publicize the Scholarship Program in a readily accessible location on the community college’s website;

  (2) Create, prominently post, and provide to initial and renewal applicants a clear and easily understandable step-by-step application process, including all required forms and documentation;

  (3) Verify eligibility of initial applicants as set forth in Education Article, §18-3603(b)—(c), Annotated Code of Maryland, and this chapter;

  (4) Select and award eligible initial applicants using the priority criteria in Education Article, §18-3604(b), Annotated Code of Maryland;

  (5) Maintain a wait list of eligible initial applicants that are not offered an award;

  (6) Verify eligibility of renewal applicants under the criteria in Education Article, §18-3604(c) and award eligible renewal applicants;

  (7) Timely notify initial and renewal applicants of their award status in writing;

  (8) Calculate award amounts as set forth in Education Article, §18-3604(a)—(b), Annotated Code of Maryland, and disburse awards to student accounts from the community college’s allocated funds;

  (9) Work with the Commission to annually reconcile the allocated funds;

  (10) Return to the Commission any unused funds and any funds for awards that were erroneously awarded;

  (11) Maintain student records received or created for the Scholarship for a period of at least 5 years after the student’s final award date;

  (12) Make all financial books, records, and documents pertaining to the Scholarship Program available for inspection by the Commission, or an authorized representative of the Commission, at any time;

  (13) Annually obtain and submit to the Commission an independent audit of the community college’s administration of the Program in accordance with this chapter; and

  (14) Provide reports and information to the Commission as set forth in this chapter and at the request of the Commission.

#### Regulation .04 Student Eligibility for Initial Applications.

*COMAR 13B.08.21.04*

A. To be eligible for the Scholarship, an applicant shall be enrolled in or plan to enroll at the community college serving the county in which the applicant lives or a community college in the State that has an on-campus residential facility for students.

B. Applicants Enrolling in Credit-Bearing Courses or Programs. An applicant enrolling in credit-bearing courses is eligible for a Scholarship if the applicant:

  (1) Is eligible for in-State tuition, as determined by the community college in accordance with Education Article, Title 15, Annotated Code of Maryland;

  (2) Has graduated from a high school or successfully completed a GED in the State;

  (3) Has not previously earned an associate’s or bachelor’s degree;

  (4) Is enrolled in or plans to enroll in a community college in:

    (a) An associate’s degree program;

    (b) A lower division certificate program; or

    (c) A sequence of credit-bearing courses that leads to licensure or certification in a particular occupation;

  (5) If the applicant graduated from high school in the State less than 5 years before the date of application and is not currently enrolled in a community college in the State, or if the applicant will graduate from a high school in the State prior to enrolling in the community college, earned an unweighted high school GPA of at least 2.3 on a 4.0 scale or its equivalent;

  (6) If the applicant has already enrolled in a community college in the State, earned a GPA of at least 2.5 on a 4.0 scale;

  (7) If enrolled or enrolling in an associate’s degree program or a lower division certification program, enrolls in at least 6 credits per semester at the community college while receiving the Scholarship;

  (8) If required by the institution, timely submits an institutional application form and supporting documentation;

  (9) If eligible to submit a FAFSA, timely submits a FAFSA and any other applications for State or federal non-loan aid for which the applicant may qualify;

  (10) If ineligible to submit a FAFSA, timely submits the MHEC OneApp;

  (11) For the most recent tax year, had an annual adjusted gross income of not more than:

    (a) $100,000 if the applicant is single or resides in a single-parent household; or

    (b) $150,000 if the applicant is married or resides in a two-parent household; and

  (12) Has not been awarded other non-loan aid that, in total, covers the applicant’s full cost of attendance at the community college.

C. Applicants Enrolling in Noncredit Courses or Participating in Registered Apprenticeships. An applicant enrolling in noncredit courses or courses required to complete a Registered Apprenticeship in the State is eligible for a Scholarship if the applicant:

  (1) Is eligible for in-State tuition, as determined by the community college in accordance with Education Article, Title 15, Annotated Code of Maryland;

  (2) If required by the program in which the student plans to enroll, has graduated from a high school or successfully completed a GED in the State;

  (3) Has not previously earned an associate’s or bachelor’s degree;

  (4) Plans to enroll in a community college in:

    (a) A noncredit vocational certificate program;

    (b) A sequence of noncredit courses that leads to licensure or certification in a particular occupation; or

    (c) Credit or noncredit courses required for the completion of a Registered Apprenticeship in the State.

  (5) If required by the community college, submits an institutional application form and supporting documentation;

  (6) If enrolling in a noncredit program for which a federal Pell Grant may be used and is eligible to submit a FAFSA, timely submits a FAFSA;

  (7) For the most recent tax year, had an annual adjusted gross income of not more than:

    (a) $100,000 if the applicant is single or resides in a single-parent household; or

    (b) $150,000 if the applicant is married or resides in a two-parent household; and

  (8) Has not been awarded other non-loan aid that, in total, covers the applicant’s full cost of attendance at the community college.

#### Regulation .05 Student Eligibility for Renewal Applications.

*COMAR 13B.08.21.05*

A. Subject to the State budget and a community college’s annual allocation for the Scholarship Program, an applicant shall be eligible to renew a Scholarship for a subsequent year if the applicant:

  (1) If required by the community college, completes any institutional application form and supporting documentation;

  (2) Timely submits a FAFSA or MHEC OneApp, as applicable, and any other applications for State and federal non-loan aid, if the applicant was required to submit them with their initial application;

  (3) Continues to meet the income requirements for the Scholarship Program under Education Article, §18-3603, Annotated Code of Maryland, and this chapter;

  (4) If applicable under Regulation .04 of this chapter, continues to enroll and complete at least 6 credits per semester;

  (5) If enrolled in credit-bearing courses, maintains a cumulative grade point average of at least 2.5 on a 4.0 scale or its equivalent for the award period, unless, upon submission of satisfactory evidence, the community college finds that extenuating circumstances, as defined in this chapter, exist;

  (6) Makes satisfactory progress, as determined by the community college, toward the student’s eligible program of study under Regulation .04 of this chapter; and

  (7) Continues to be eligible for in-State tuition.

B. A recipient may receive a Scholarship only for the shorter of:

  (1) A total of 3 years, unless the community college, upon submission of satisfactory evidence, finds that extenuating circumstances, as defined in this chapter, exist that justify an interruption of study and prevent the recipient from continuous enrollment; or

  (2) The date that the individual is awarded an associate degree.

#### Regulation .06 Verification of Eligibility.

*COMAR 13B.08.21.06*

A. A community college shall verify the eligibility of each applicant for a Scholarship in accordance with Education Article, §§18-3603 and 18-3603.1, Annotated Code of Maryland, and Regulations .04 and .05 of this chapter.

B. Income eligibility of applications shall be verified as described in this regulation.

C. Applicants Eligible for Federal Aid.

  (1) A community college shall verify the income eligibility of an applicant federally selected for verification under the standards set by the U.S. Department of Education.

  (2) The Commission will identify all Scholarship recipients who are federally selected for verification under the V1 and V5 verification groups and transmit the information to the community colleges on a roster through MDCAPS.

  (3) The federal verification performed by the community for a student who has filed a federal tax return shall include verification of:

    (a) Adjusted gross income;

    (b) Federal income tax paid;

    (c) Untaxed portions of IRA distributions;

    (d) Untaxed portions of pensions;

    (e) IRA deductions and payments;

    (f) Tax-exempt interest income;

    (g) Education credits;

    (h) Number of household members;

    (i) Number of household members enrolled in an institution of higher education; and

    (j) Transaction number of the Institutional Student Information Report used.

  (4) The federal verification performed by the community college for a student who has not filed a federal income tax return, but who has filed a FAFSA, shall include verification of:

    (a) Income earned from work;

    (b) Number of household members; and

    (c) Number of household members enrolled in an institution of higher education.

  (5) The community colleges shall promptly update recipient records in MDCAPS using information verified under this section.

D. Applicants Ineligible for Federal Aid.

  (1) A community college shall select and verify the adjusted gross income levels and demonstrated need of a representative sample of applicants who:

    (a) Are ineligible to receive federal aid;

    (b) Submitted the MHEC OneApp; and

    (c) Filed a State or federal tax return for the appropriate year.

  (2) For an applicant selected by the community college for verification under §D(1) of this regulation, the community college shall verify the following:

    (a) Adjusted gross income;

    (b) Income tax paid;

    (c) Untaxed portions of IRA distributions;

    (d) IRA deductions and payments;

    (e) Tax-exempt interest income;

    (f) Education credits;

    (g) Number of household members; and

    (h) Number of household members enrolled in an institution of higher education.

#### Regulation .07 Institutional Allocation.

*COMAR 13B.08.21.07*

A. At the beginning of each State fiscal year, and no later than August 15, the Commission shall notify each community college of the total dollar amount of funds allocated to the institution for initial and renewal awards.

B. The Commission shall annually allocate the funds appropriated for the Scholarship Program in the State budget based on a community college’s pro rata share of the total number of students who attended community colleges in the State who were eligible for the federal Pell Grant during the State fiscal year 2 years prior to the fiscal year in which the funds are being allocated.

C. Except as set forth in §E of this regulation, on a date established by the Commission, each community college shall be initially disbursed half of the amount of the annual allocation.

D. Except as set forth in §E of this regulation, the amount of total funds remaining after the initial disbursement shall be disbursed as follows.

  (1) A community college that has awarded at least 66 percent of their initial disbursement by December 31 shall receive the remaining half of the amount calculated under §B of this regulation in a second disbursement on a date established by the Commission.

  (2) A community college that has awarded 95 percent of their initial disbursement prior to December 31 shall notify the Commission and the Commission may, at its discretion, provide the second disbursement to the community college at an earlier date.

  (3) If a community college has awarded less than 66 percent of their initial disbursement by December 31, the community college shall consult with the Commission. If the community college determines, after consultation with the Commission, that the community college is unlikely to need the entirety of the remaining 50 percent of the amount calculated under §B of this regulation, the community college may authorize the Commission to retain all or part of the remaining 50 percent of their annual allocation for reallocation to community colleges that have awarded a higher percent of their initial disbursement.

  (4) The Commission shall calculate the reallocation of the funds retained under §D(3) of this regulation to community colleges based on a community college’s pro rata share of the amount of funds from the initial disbursement awarded to students by each community college by December 31.

  (5) The Commission shall notify the community colleges of the amount of any reallocated funds they will receive no later than January 21.

E. If all 16 community colleges in the State enter into an agreement with the Commission to receive disbursements from their total allocation via an alternate method set forth in the agreement, the Commission shall substitute the disbursement procedures in §§C and D of this regulation with those in the agreement.

#### Regulation .08 Reconciliation, Audit, and Return of Funds.

*COMAR 13B.08.21.08*

A. The Commission and the community colleges shall annually reconcile the allocated funds in a form and manner prescribed by the Commission.

B. All Scholarship Program funds that were not awarded by a community college by the end of the State fiscal year shall be returned to the Commission by a date established by the Commission.

C. A community college shall annually provide to the Commission by June 1 an independent audit of their administration of the Scholarship Program during the prior State fiscal year.

D. The audit:

  (1) Shall be conducted in accordance with the standards of the American Institute of Certified Public Accountants and in compliance with generally accepted auditing standards;

  (2) Shall determine whether and to what extent the institution has complied with the statutory and regulatory requirements of the Scholarship Program;

  (3) Shall assess:

    (a) Accuracy of award eligibility determination performed by the institution for both initial and renewal awards;

    (b) Compliance with federal regulations and guidelines relating to income verification;

    (c) Adequacy of reporting by the institution to the Commission in the ISIR; and

    (d) Accuracy of award amount calculations and disbursements to student accounts; and

  (4) Shall include a management letter from the auditor to the institution containing a list of all material weaknesses in the institution’s system of internal controls and the institution’s response to each item set forth in the management letter.

E. An institution’s independent auditor may include results of multiple State financial assistance program audits in one report.

F. If the Commission finds, through the audit or another method, that the community college made an award to an ineligible student or the award amount was calculated incorrectly, the community college shall remit the amount of that award to the Commission, and may not require repayment of the amount from the student or from any third party on behalf of the student.

G. If a community college does not timely return or remit funds as required by this regulation or fails to comply with an auditor’s recommendations prior to the next audit, the Commission may:

  (1) Delay a subsequent year’s disbursement until the unreturned or unremitted funds have been paid to the Commission; or

  (2) Suspend participation by the institution in the Scholarship Program until the funds have been remitted or the institution has come into compliance, as applicable.

#### Regulation .09 Reporting.

*COMAR 13B.08.21.09*

A. Each community college shall annually submit the following information to the Commission by the date identified.

B. No later than December 15, a community college shall submit a completed Promise Certification and Repayment Roster form provided by the Commission that identifies all awardees who received awards for the fall semester.

C. No later than June 15, a community college shall submit a completed Promise Certification and Repayment Roster form provided by the Commission that identifies all awardees who received awards for the spring semester.

D. By October 15, a community college shall submit a final, end-of-year report that identifies all awardees who received awards during the prior State fiscal year.