MHEC briefs committee on FAFSA delays, rollout of new scholarship app and teacher retention stipends

Officials from the Maryland Higher Education Commission (MHEC) briefed the subcommittee on student financial assistance and scholarship programs, identifying the U.S. Department of Education's delay in delivering FAFSA/ISIR data as the principal cause of late award notifications.

Analyst Micah Richards said Maryland’s FAFSA completion rate among public high students rose to 58% for the 2023–24 award cycle. MHEC’s Dr. (Rai) told the committee that because ISIR delivery has shifted later in the federal timeline, MHEC now expects student ISIRs by mid‑March and into May rather than the typical November delivery, and that the agency will begin award processing once it receives that data.

To streamline state scholarship administration, Dr. Rai described the new "MHEC 1 app," a centralized online application that lets students apply for multiple state scholarships with one form and is available to undocumented students for state programs. "The MHEC 1 app does not replace the FAFSA, but it centralizes the application process for the many different state scholarships that are available to students," Rai said.

Committee members pressed for clarity on timing and reporting. Senator Bailey and others asked how legislators and offices will determine available senatorial or delegate scholarship amounts around graduation ceremonies in May. MHEC staff said legislative amounts are fixed in statute and that offices can run reports in the Maryland CAPS system to see how much has been used and what remains; staff offered to follow up with offices to ensure timely award notification.

The commission also described a $10 million teacher development and retention program transferred from the State Department of Education to MHEC; officials said five institutions had confirmed participation and stipend disbursements would begin this semester for eligible students at participating institutions, with a later internship stipend phase through 2029. MHEC asked the committee to expect follow‑up reports on next‑generation scholars and the credit‑completion impact on awards.

The subcommittee requested additional details on program outreach, the composition of rollover balances in need‑based funds, and plans to use FY25 reappropriated special funds; no formal committee votes were recorded on the presentations.