"It is every educator’s responsibility to identify students who may need adjustment in the course fee and not depend on student self-identification," according to instructions on the form.
Teacher don't ask for financial statements from students parents, so it's not known how teachers identify which students "need" an adjustment in a course fee without subjecting the students to embarrassing questions. Teachers aren't allowed to know which students participate in the "free and reduced meals" (FARM) program, so they can't possibly be using participation in FARMS program as a way to determine who "needs" a fee waiver.
(Please note: If any teacher can tell me how they determine which students "need" a fee waiver and which students don't "need" a fee waiver by just looking at them, please let me know.)
Instructions on form 260-1 state that "it is intended for the school’s financial records ONLY and should NOT be given to a student or parent/guardian as an application form." Teachers are busy, though, and there's nothing that says that a parent can't fill in form 260-1 and send it in with their child. In fact, the form can even be filled in online, then saved and sent to the teacher as an email attachment. Wow, MCPS thinks of everything!