Legislation Spotlight: HB 231 Eliminating Financial Aid “Award Displacement”

House Bill 231: Public Institutions of Higher Education – Financial Aid – Reduction Prohibited

This bill would prohibit public colleges and universities from engaging in the practice of “award displacement.” This happens when enterprising students get financial aid from private scholarship groups such as Central Scholarship, a wonderful non-profit based in Owings Mills, after they’ve been awarded institutional aid by their college. Many students need to get financial aid from such groups to make college affordable.

Unfortunately, some Maryland colleges reduce their institutional aid to students by the amount of new aid that students have obtained. This practice is a misuse of private donor funds, will discourage giving, and is unfair to the student. My House Bill 231 would prohibit such award displacement when a student’s “financial need” has not been met.