(Approved by the Board of Regents, February 10, 1995)
  I.   Purpose
       The Regents of the University of Maryland System (UMS)
       recognize that financial support of deserving students is an
       important means of enhancing the human capital of the State
       of Maryland and enriching the learning environments of the
       System's institutions.  Therefore, each institution of the
       System is encouraged, to the extent feasible and prudent, to
       use institutional financial resources to supplement federal,
       state, and private financial resources in aiding students of
       all types who, in the absence of such support, may be unable
       to enroll in the institution.  Institutional financial aid
       should also support the institution's particular mission and
       student clienteles.
       This policy is applicable only to institutional student
       financial aid provided to undergraduate students.
  II.  Definitions
       Institutional student financial aid is financial assistance
       provided from state-supported unrestricted funds, i.e.,
       those general state funds and tuition and fee revenues that
       are not specifically restricted as to the purpose(s) for
       which the funds may be expended.
       Tuition waivers that are not a part of UMS employee benefits
       (e.g., employee, spouse, and dependent tuition waivers) are
       a form of institutional student financial aid.  Such tuition
       waivers shall be accounted for and reported at the face
       value of the tuition being waived.
       Work-study payments to students from state-supported
       unrestricted funds on the basis of need, merit, or a
       combination of both are a form of institutional student
       financial aid.  Intra-institutional student employment for
       which job-related skills are the only requirement is not a
       form of institutional student financial aid, since it is not
       different from comparable extra-institutional employment.
       The definitions of "financial need," "cost of attendance,"
       and "family contribution" are the currently applicable
       definitions of these terms adopted by the State Scholarship
       Administration.  The total amount of institutional student
       financial aid awarded any individual undergraduate student
       shall not exceed the cost of attendance for that student.
  III. Policy
       A.   Each institution of the University of Maryland
            that enrolls undergraduate students shall develop
            policy guidelines for the award of institutional
            financial aid to undergraduate students.  These
            policy guidelines should explicitly include the
            following elements:
            1.   Criteria for awards to state-resident and to non-
                 resident students based on need, on merit
                 (including special talent--academic, artistic,
                 musical, and/or athletic), or a combination of
                 need and merit.
            2.   Criteria for awards to full-time students and to
                 part-time students.
            3.   Criteria for awards to students who transfer from
                 Maryland community colleges, from other UMS
                 institutions, from other Maryland public four-year
                 institutions, and from non-Maryland institutions.
            4.   Criteria for the inclusion of mission related
       B.   The policy guidelines should include targets or other
            characterization of the intended apportionment of
            state-supported unrestricted funds among the various
            elements and student categories listed in Paragraph A
       C.   Each institution shall include with its annual request
            to the Regents for increases in undergraduate tuitions
            an indication of the proportion of new undergraduate
            tuition revenues that will be allocated to
            institutional student financial aid.
       D.   Institutional policy guidelines developed in response
            to this regents' policy shall be approved by the
            institution's president and submitted to the Chancellor
            no later than June 30, 1995, for implementation
            starting with the 1996-97 academic year.  The
            Chancellor shall report to the Regents on the
            institutional policy guidelines no later than December,
            1995.  Thereafter, any changes in institutional policy
            guidelines shall be reported to the Chancellor no later
            than June 30 of the relevant year.
       E.   To provide the necessary accountability to the Regents
            and to the State, each president shall submit a report
            to the Regents by October 1 of each year, in a format
            prescribed by the Chancellor.  The report shall include
            the amount and proportion of institutional student aid
            funds awarded in each of the student categories
            specified in the various elements listed in Paragraph A
            above, and the number of students aided in each
            category.  The report shall be accompanied by a copy of
            the currently applicable institutional policy
  This policy replaces the Board of Regents Policy on Waiver of
  Tuition for Meritorious Undergraduate Students (BOR VIII-2.40)