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SB 552

ABC Omnibus 2025.

2025-2026 Session Introduced by Bobby Hanig and 1 co-sponsor

Starting 2026–27, Maryland public high school students must complete and submit FAFSA or MSFAA to graduate, with opt-outs, waivers, and annual reporting.

Passed 1st Reading
0
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Bill Summary · SB 552

Summary — SB 552 (Education — High School Graduation Requirements — Financial Aid Application)

Status: Introduced Feb 20, 2025; Hearing scheduled Feb 21, 2025 (9:30 a.m.). Effective date in bill text: October 1, 2025. Requirement begins in the 2026–2027 school year.

Main purpose

Require Maryland public high school students, as a condition of graduation beginning in 2026–2027, to complete and submit a postsecondary financial aid application — either the Free Application for Federal Student Aid (FAFSA) or the Maryland State Financial Aid Application (MSFAA).

Key provisions

  • Graduation requirement (beginning 2026–2027): each student must complete and submit either:
    • the FAFSA to the U.S. Department of Education, or
    • the MSFAA to the Maryland Higher Education Commission (MHEC).
  • Opt-out: a student, or the parent/legal guardian of a minor student, may submit a signed form to the county board stating the student understands the FAFSA/MSFAA and declines to complete and submit it.
  • Waivers: a county board must waive the requirement if either:
    • the student has completed all other graduation requirements and the principal attests the student made a “good faith effort” to complete the FAFSA/MSFAA; or
    • a parent/legal guardian requests a waiver due to extenuating circumstances.
  • Regulations: the Maryland State Department of Education (MSDE) must adopt implementing regulations including guidelines to ensure adequate support for students to complete the forms.
  • Annual reporting: each county board must report to legislative committees by July 1 each year (2027–2032) on:
    • number of students who completed/submitted FAFSA or MSFAA in the prior school year;
    • number who declined to complete; and
    • number who received waivers.
  • Effective date: Oct 1, 2025 (statutory clause in bill).

Who is affected

  • Public high school students in Maryland (and their parents/guardians).
  • County boards of education and local school systems (responsibility for implementation, counseling/support, tracking and reporting).
  • MSDE and MHEC (regulatory, data, and administrative roles).
  • Undocumented students eligible under the Maryland Dream Act would use the MSFAA.

Implementation timeline & procedural notes

  • Requirement applies beginning with the 2026–2027 school year.
  • MSDE to promulgate regulations prior to or accompanying implementation.
  • County boards must begin annual reporting in 2027 (covering the 2026–2027 school year) through 2032.

Fiscal and operational impacts (per fiscal note)

  • State: potential significant one-time and ongoing general fund expenditures to enable local school systems to access individual MSFAA completion data (MSFAA systems not currently set up to provide that access). Costs depend on which agency/system (MHEC, MSDE, Maryland Longitudinal Data System) handles matching; estimates may include hundreds of thousands of dollars for programming and possible ongoing staffing.
  • Local school systems: likely increased costs — potentially significant — for additional counselors or staff to help students complete FAFSA/MSFAA and to track completion (varies by district; systems with low current completion rates would need more resources). Without added resources, schools may divert counseling time from other duties or use waiver provisions.
  • Revenues: no direct change to State or local revenues anticipated; increased application completion could increase individual students’ access to aid, but State aid programs generally operate from fixed appropriations.

Notes and context

  • FAFSA opens Oct 1 each year; state and institutional deadlines may be earlier (Maryland generally uses March 1 for many state aid programs).
  • FAFSA completion initiatives and data-tracking exist for FAFSA (FAFSA Completion Initiative), but MSFAA completion tracking/access is limited under current systems.
  • The bill includes both a pathway to increase students’ access to financial aid and mechanisms (opt-outs/waivers) and recognizes administrative needs for data access and student support.

Compiled from official sources — confirm details with the bill’s official record.

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