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FAFSA changes and rising need shift MHEC financial‑aid budget focus; analysts propose cuts to some programs
Summary
Analysts told the subcommittee FAFSA technical changes have changed eligibility and increased applications for certain state grants. DLS recommended trimming underspent programs; MHEC officials asked for time to evaluate transitions and urged preserving funding for Promise and other student‑aid programs.
Department of Legislative Services testimony and MHEC officials at the Education and Economic Development Subcommittee hearing outlined how federal FAFSA changes and state budget decisions are reshaping Maryland’s student financial‑aid landscape.
DLS analyst Micah Richards told the panel that the federal FAFSA Simplification Act replaced the expected family contribution (EFC) with the student aid index (SAI). Technical and implementation challenges delayed applicants for one award year and contributed to a roughly 3% drop in FAFSA submissions in Maryland for the 2024–25 award year, Richards said. Despite that, MHEC reported Maine’s FAFSA completion rate remained above the national average (the DLS presentation reported Maryland’s FAFSA completion as roughly 50%…
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