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Analysts press MHEC on scholarship awards after vendor errors and waitlists
Summary
DLS told the subcommittee that changes in guaranteed‑access law, vendor errors and funding priorities have left some Educational Excellence awards unissued and prompted recommended reporting; MHEC described corrective steps and outreach.
The subcommittee turned next to student financial assistance, where Department of Legislative Services analysts described a complex set of issues affecting Maryland’s state scholarship programs and asked MHEC to clarify steps to correct program errors and award processes.
DLS analyst David Propert said guaranteed access (GA) awards have increased since an eligibility expansion, and that the Educational Excellence Award (EA) program has not issued initial EA awards in the last two fiscal years as GA awards received statutory priority. Propert also identified system and process problems: GA‑program vendor errors that resulted in potentially ineligible awards and a separate instance in which eligible recipients were initially denied. He recommended committee narrative and further reporting on corrective actions and potential restrictions pending those corrections.
Sanjay Rai, MHEC secretary, and MHEC staff acknowledged the DLS review and outlined actions in response. Rai said the agency will submit written testimony and follow‑up reporting. Deputy secretary Elena Quiroz and Al Dorsey, director of the Office of Student Financial Assistance, described administrative causes and fixes: FAFSA simplification and outreach have increased filings (MHEC cited a 64% increase in FAFSA completions), GA eligibility expansions under HB 923 have changed award composition, and certain award timing and data issues affected EA initial awards. On problems caused by guidance issued during fiscal constraint, DLS and MHEC explained that initial MHEC guidance excluding off‑campus students’ room and board was later reversed after Attorney General guidance clarified statutory requirements, and MHEC said it will correct past award decisions where necessary.
DLS also summarized Office of Legislative Audits findings that MHEC had delayed verification of service obligations and had reconciliation gaps; the agency said it has cleared backlogs through FY23 and will submit an update on remaining audit items. MHEC asked the committee for continued collaboration on recommendations and for time to implement stronger internal planning, formal written guidance before awards, and additional training of financial aid administrators.
Public testimony from nonprofit college‑access groups reinforced the practical consequences of grant and outreach changes. Joe Fisher of First Generation College Bound and Jill Simmons of Collegiate Directions asked the subcommittee to sustain funding for outreach programs that help low‑income and first‑generation students complete applications and access aid.
Next steps: MHEC will provide requested follow‑up documents on award corrections, vendor fixes, reconciliation progress and a plan for preventing similar disruptions in future award cycles.
