AB 1590, as amended, Wieckowski. Student financial aid: Cal Grant Program.
Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Cal Grant Program), establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions, as defined. The existing definition of a qualifying institution includes, among other institutions, California private or independent postsecondary educational institutions that participate in the Pell Grant Program and in at least 2 of the following federal campus-based programs: federal Work-Study, the Perkins Loan Program, and the Supplemental Education Opportunity Grant Program.
Existing law requires the commission to certify by October 1 of each year a qualifying institution’s latest 3-year cohort default rate and graduation rate as most recently reported by the United States Department of Education.
This bill would express findings and declarations, would delete “campus-based” from the description of the federal programs referenced above in connection with the California private orbegin insert independentend insert postsecondary educational institutions that are defined as qualifying institutions, and would replace the Perkins Loan Program with the Stafford Loan Program for purposes of qualifying a private or independent postsecondarybegin insert educationalend insert institution for Cal grants. The bill would change the date the
commission needs to certify the institution’s latestbegin insert officialend insert 3-year cohort default rate and graduation rate to Novemberbegin delete 1end deletebegin insert
1,end insert and would define the graduation rate of a qualifying institution to be the percentage of full-time, first-time degree or certificate-seeking undergraduate students who graduate in 150% or less of the expected time to complete the degree requirements as most recently reported by the United States Department of Education.begin insert The bill would also delete obsolete provisions and make conforming and nonsubstantive changes.end insert
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares all of the
2following:
3(a) The Budget Act of 2011 and the Budget Act of 2012 made
4significant statutory changes to the Cal Grant Program, refining
5institutional eligibility based on cohort default rates and graduation
6rates, which measure institutional quality.
7(b) College institutions with a substantial proportion of students
8taking out federal student loans and with a high percentage of those
9borrowers defaulting on the student loans no longer qualify to
10participate in the Cal Grant Program. The Budget Act of 2012
11further tightened the loan default
limit, and added a minimum
12graduation rate that institutions must satisfy to remain eligible to
13participate in the Cal Grant Program.
14(c) Due to a lack of clarity, there is confusion about the
15implementation by the Student Aid Commission of these statutory
16changes.
P3 1(d) On January 7, 2013, the Legislative Analyst’s Office issued
2a report entitled, “An Analysis of New Cal Grant Eligibility Rules,”
3which analyzed the new eligibility rules and offered several
4findings and recommendations for clarifying existing statute.
5(e) Clarifying these provisions going forward will avoid further
6confusion and ensure consistency in the administration of the Cal
7Grant Program.
Section 69432.7 of the Education Code is amended to
9read:
As used in this chapter, the following terms have the
11following meanings:
12(a) An “academic year” is July 1 to June 30, inclusive. The
13starting date of a session shall determine the academic year in
14which it is included.
15(b) “Access costs” means living expenses and expenses for
16transportation, supplies, and books.
17(c) “Award year” means one academic year, or the equivalent,
18of attendance at a qualifying institution.
19(d) “College grade point average” and “community college
20grade point average” mean a grade point
average calculated on the
21basis of all college work completed, except for nontransferable
22units and courses not counted in the computation for admission to
23a California public institution of higher education that grants a
24baccalaureate degree.
25(e) “Commission” means the Student Aid Commission.
26(f) “Enrollment status” means part- or full-time status.
27(1) “Part time,” for purposes of Cal Grant eligibility, means 6
28to 11 semester units, inclusive, or the equivalent.
29(2) “Full time,” for purposes of Cal Grant eligibility, means 12
30or more semester units or the equivalent.
31(g) “Expected family contribution,” with
respect to an applicant,
32shall be determined using the federal methodology pursuant to
33subdivision (a) of Section 69506 (as established by Title IV of the
34
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec.
351070 et seq.)) and applicable rules and regulations adopted by the
36commission.
37(h) “High school grade point average” means a grade point
38average calculated on a 4.0 scale, using all academic coursework,
39for the sophomore year, the summer following the sophomore
40year, the junior year, and the summer following the junior
P4 1year,excluding physical education, reserve officer training corps
2(ROTC), and remedial courses, and computed pursuant to
3regulations of the commission. However, for high school graduates
4who apply after their senior year, “high school grade point average”
5includes senior year coursework.
6(i) “Instructional program of not less than one academic year”
7means a program of study that
results in the award of an associate
8or baccalaureate degree or certificate requiring at least 24 semester
9units or the equivalent, or that results in eligibility for transfer from
10a community college to a baccalaureate degree program.
11(j) “Instructional program of not less than two academic years”
12means a program of study that results in the award of an associate
13or baccalaureate degree requiring at least 48 semester units or the
14equivalent, or that results in eligibility for transfer from a
15community college to a baccalaureate degree program.
16(k) “Maximum household income and asset levels” means the
17applicable household income and household asset levels for
18participants, including new applicants and renewing recipients, in
19the Cal Grant Program, as defined and adopted in
regulations by
20the commission for the 2001-02 academic year, which shall be
21set pursuant to the following income and asset ceiling amounts:
|
CAL GRANT PROGRAM INCOME CEILINGS |
|
|
Cal Grant A, |
Cal Grant B |
|
Dependent and Independent students with dependents* |
||
|
Family Size |
|
|
|
Six or more |
$74,100 |
$40,700 |
|
Five |
$68,700 |
$37,700 |
|
Four |
$64,100 |
$33,700 |
|
Three |
$59,000 |
$30,300 |
|
Two |
$57,600 |
$26,900 |
|
|
|
|
|
Single, no dependents |
$23,500 |
$23,500 |
|
Married |
$26,900 |
$26,900 |
39*Applies to independent students with dependents other than a
P5 1spouse.
|
CAL GRANT PROGRAM ASSET CEILINGS |
|
|
Cal Grant A, |
Cal Grant B |
|
|
|
|
|
Independent |
$23,600 |
$23,600 |
11**Applies to independent students with dependents other than a
12spouse.
13
14The commission shall annually adjust the maximum household
15income and asset levels based on the percentage change in the cost
16of living within the meaning of paragraph (1) of subdivision (e)
17of Section 8 of Article XIII B of the California Constitution. The
18maximum household income and asset levels applicable to a
19renewing recipient shall be the greater of the adjusted maximum
20household income and asset levels or the maximum
household
21income and asset levels at the time of the renewing recipient’s
22initial Cal Grant award. For a recipient who was initially awarded
23a Cal Grant for an academic year before the 2011-12 academic
24year, the maximum household income and asset levels shall be the
25greater of the adjusted maximum household income and asset
26levels or the 2010-11 academic year maximum household income
27and asset levels. An applicant or renewal recipient who qualifies
28to be considered under the simplified needs test established by
29federal law for student assistance shall be presumed to meet the
30asset level test under this section. Prior to disbursing any Cal Grant
31funds, a qualifying institution shall be obligated, under the terms
32of its institutional participation agreement with the commission,
33to resolve any conflicts that may exist in the data the institution
34possesses relating to that individual.
35(l) (1) “Qualifying institution” means an institution that
36complies with paragraphs (2) and (3) and is any of the following:
37(A) A California private or independent postsecondary
38educational institution that participates in the Pell Grant Program
39and in at least two of the following federal student aid programs:
P6 1(i) Federal Work-Study.
2(ii) Stafford Loan Program.
3(iii) Supplemental Educational Opportunity Grant Program.
4(B) A
nonprofit institution headquartered and operating in
5California that certifies to the commission that 10 percent of the
6
institution’s operating budget, as demonstrated in an audited
7financial statement, is expended for purposes of institutionally
8funded student financial aid in the form of grants, that demonstrates
9to the commission that it has the administrative capacity to
10administer the funds, that is accredited by the Western Association
11of Schools and Colleges, and that meets any other state-required
12criteria adopted by regulation by the commission in consultation
13with the Department of Finance. A regionally accredited institution
14that was deemed qualified by the commission to participate in the
15Cal Grant Program for the 2000-01 academic year shall retain its
16eligibility as long as it maintains its existing accreditation status.
17(C) A California public postsecondary educational institution.
18(2) (A) The institution shall provide information on where to
19access California license examination passage rates for the most
20recent available year from graduates of its undergraduate programs
21leading to employment for which passage of a California licensing
22examination is required, if that data is electronically available
23through the Internet Web site of a California licensing or regulatory
24agency. For purposes of this paragraph, “provide” may exclusively
25include placement of an Internet Web site address labeled as an
26access point for the data on the passage rates of recent program
27graduates on the Internet Web site where enrollment information
28is also located, on an Internet Web site that provides centralized
29admissions information for postsecondary educational systems
30with multiple campuses, or on applications for enrollment or
31otherprogram information distributed to
prospective students.
32(B) The institution shall be responsible for certifying to the
33commission compliance with the requirements of subparagraph
34(A).
35(3) (A) The commission shall certify by November 1 of each
36year the institution’s latest official three-year cohort default rate
37and graduation rate as most recently reported by the United States
38Department of Education. For purposes of this section, the
39graduation rate is the percentage of full-time, first-time degree or
40certificate-seeking undergraduate students who graduate in 150
P7 1percent or less of the expected time to complete degree
2requirements as most recently reported publicly in any format,
3including preliminary data records, by the United States
4Department of Education.
5(B) For purposes of the 2011-12 academic year, an otherwise
6qualifying institution with a three-year cohort default rate reported
7by the United States Department of Education that is equal to or
8greater than 24.6 percent shall be ineligible for initial and renewal
9Cal Grant awards at the institution, except as provided in
10subparagraph (F).
11(C) For purposes of the 2012-13 academic year, and every
12academic year thereafter, an otherwise qualifying institution with
13a three-year cohort default rate that is equal to or greater than 15.5
14percent, as certified by the commission on October 1, 2011, and
15every year thereafter, shall be ineligible for initial and renewal Cal
16Grant awards at the institution, except as provided in subparagraph
17(F).
18(D) (i) An otherwise qualifying institution that becomes
19ineligible under this paragraph for initial and renewal Cal Grant
20awards shall regain its eligibility for the academic year for which
21it satisfies the requirements established in subparagraph (B), (C),
22or (G), as applicable.
23(ii) If the United States Department of Education corrects or
24revises an institution’s three-year cohort default rate or graduation
25rate that originally failed to satisfy the requirements established
26in subparagraph (B), (C), or (G), as applicable, and the correction
27or revision results in the institution’s three-year cohort default rate
28or graduation rate satisfying those requirements, that institution
29shall immediately regain its eligibility for the academic year to
30which the corrected or revised three-year cohort default rate or
31graduation
rate would have been applied.
32(E) An otherwise qualifying institution for which no three-year
33cohort default rate or graduation rate has been reported by the
34United States Department of Education shall be provisionally
35eligible to participate in the Cal Grant Program until a three-year
36cohort default rate or graduation rate has been reported for the
37institution by the United States Department of Education.
38(F) (i) An institution that is ineligible for initial and renewal
39Cal Grant awards at the institution under subparagraph (B), (C),
40or (G) shall be eligible for renewal Cal Grant awards for recipients
P8 1who were enrolled in the ineligible institution during the academic
2year before the academic year for which the institution is ineligible
3and who choose to renew
their Cal Grant awards to attend the
4ineligible institution. Cal Grant awards subject to this subparagraph
5shall be reduced as follows:
6(I) The maximum Cal Grant A and B Awards specified in the
7annual Budget Act shall be reduced by 20 percent.
8(II) The reductions specified in this subparagraph shall not
9impact access costs as specified in subdivision (b) of Section
1069435.
11(ii) This subparagraph shall become inoperative on July 1, 2013.
12(G) For purposes of the 2012-13 academic year, and every
13academic year thereafter, an otherwise qualifying institution with
14a graduation rate of 30 percent or less,
as certified by the
15commission pursuant to subparagraph (A), shall be ineligible for
16initial and renewal Cal Grant awards at the institution, except as
17provided for in subparagraphs (F) and (I).
18(H) Notwithstanding any other law, the requirements of this
19paragraph shall not apply to institutions with 40 percent or less of
20undergraduate students borrowing federal student loans, using
21information reported to the United States Department of Education
22for the academic year two years before the academic year in which
23the commission is certifying the three-year cohort default rate or
24graduation rate pursuant to subparagraph (A).
25(I) Notwithstanding subparagraph (G), an otherwise qualifying
26institution that maintains a three-year cohort default rate that is
27less than 10
percent and a graduation rate above 20 percent, as
28certified by the commission pursuant to subparagraph (A), shall
29remain eligible for initial and renewal Cal Grant awards at the
30institution through the 2016-17 academic year.
31(J) The commission shall do all of the following:
32(i) Notify initial Cal Grant recipients seeking to attend, or
33attending, an institution that is ineligible for initial and renewal
34Cal Grant awards under subparagraph (C) or (G) that the institution
35is ineligible for initial Cal Grant awards for the academic year for
36which the student received an initial Cal Grant award.
37(ii) Notify renewal Cal Grant recipients
attending an institution
38that is ineligible for initial and renewal Cal Grant awards at the
39institution under subparagraph (C) or (G) that the student’s Cal
40Grant award will be reduced by 20 percent, or eliminated, as
P9 1appropriate, if the student attends the ineligible institution in an
2academic year in which the institution is ineligible.
3(iii) Provide initial and renewal Cal Grant recipients seeking to
4attend, or attending, an institution that is ineligible for initial and
5renewal Cal Grant awards at the institution under subparagraph
6(C) or (G) with a complete list of all California postsecondary
7educational institutions at which the student would be eligible to
8receive an unreduced Cal Grant award.
9(m) “Satisfactory academic progress” means those criteria
10required by
applicable federal standards published in Title 34 of
11the Code of Federal Regulations. The commission may adopt
12regulations defining “satisfactory academic progress” in a manner
13that is consistent with those federal standards.
begin insertSection 69432.7 of the end insertbegin insertEducation
Codeend insertbegin insert, as amended
15by Section 2 of Chapter 34 of the Statutes of 2014, is amended to
16read:end insert
As used in this chapter, the following terms have the
18following meanings:
19(a) An “academic year” is July 1 to June 30, inclusive. The
20starting date of a session shall determine the academic year in
21which it is included.
22(b) “Access costs” means living expenses and expenses for
23transportation, supplies, and books.
24(c) “Award year” means one academic year, or the equivalent,
25of attendance at a qualifying institution.
26(d) “College grade point average” and “community college
27grade point average” mean a grade point average calculated on the
28basis of all college work completed, except for
nontransferable
29units and courses not counted in the computation for admission to
30a California public institution of higher education that grants a
31baccalaureate degree.
32(e) “Commission” means the Student Aid Commission.
33(f) “Enrollment status” means part- or full-time status.
34(1) “Part time,” for purposes of Cal Grant eligibility, means 6
35to 11 semester units, inclusive, or the equivalent.
36(2) “Full time,” for purposes of Cal Grant eligibility, means 12
37or more semester units or the equivalent.
38(g) “Expected family contribution,” with respect to an applicant,
39shall be determined using the federal methodology pursuant to
40subdivision (a) of Section 69506 (as established by Title IV of the
P10 1
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec.
21070 et seq.)) and applicable rules and regulations adopted by the
3commission.
4(h) “High school grade point average” means a grade point
5average calculated on a 4.0 scale, using all academic coursework,
6for the sophomore year, the summer following the sophomore
7year, the junior year, and the summer following the junior year,
8excluding physical education,begin delete reserve officer training corpsend deletebegin insert Reserve
9Officers’ Training Corpsend insert (ROTC), and remedial courses, and
10computed pursuant to regulations of the commission. However,
11for high school graduates who apply after their senior year, “high
12school grade point average” includes senior year coursework.
13(i) “Instructional program of not less than one academic year”
14means a program of study that results in the award of an associate
15or baccalaureate degree or certificate requiring at least 24 semester
16units or the equivalent, or that results in eligibility for transfer from
17a community college to a baccalaureate degree program.
18(j) “Instructional program of not less than two academic years”
19means a program of study that results in the award of an associate
20or baccalaureate degree requiring at least 48 semester units or the
21equivalent, or that results in eligibility for transfer from a
22community college to a baccalaureate degree program.
23(k) begin insert(1)end insertbegin insert end insert“Maximum household income and asset levels” means
24
the applicable household income and household asset levels for
25participants, including new applicants and renewing recipients, in
26the Cal Grant Program, as defined and adopted in regulations by
27the commission for the 2001-02 academic year, which shall be
28set pursuant to the following income and asset ceiling amounts:
|
CAL GRANT PROGRAM INCOME CEILINGS |
|
|
Cal Grant A, |
Cal Grant B |
|
Dependent and Independent students with dependents* |
||
|
Family Size |
|
|
|
Six or more |
$74,100 |
$40,700 |
|
Five |
$68,700 |
$37,700 |
|
Four |
$64,100 |
$33,700 |
|
Three |
$59,000 |
$30,300 |
|
Two |
$57,600 |
$26,900 |
|
|
|
|
|
Single, no dependents |
$23,500 |
$23,500 |
|
Married |
$26,900 |
$26,900 |
7*Applies to independent students with dependents other than a
8spouse.
|
CAL GRANT PROGRAM
ASSET CEILINGS |
|
|
Cal Grant A, |
Cal Grant B |
|
|
|
|
|
Independent |
$23,600 |
$23,600 |
18**Applies to independent students with dependents other than a
19spouse.
20
21 The
end delete
22begin insert(2)end insertbegin insert end insertbegin insertTheend insert commission shall annually adjust the maximum
23household income and asset levels based on the percentage change
24in the cost of living within the meaning of paragraph (1) of
25subdivision (e) of Section 8 of Article XIII B of the California
26Constitution. The maximum household income and asset levels
27applicable to a renewing recipient shall be the greater of the
28adjusted maximum household income and asset levels or the
29maximum household income and asset levels at the time of the
30renewing recipient’s initial Cal Grant award. For a recipient who
31was initially awarded a Cal Grant for an academic year before the
322011-12 academic year, the maximum household income and asset
33levels shall be the greater of the adjusted maximum household
34income and asset levels or the 2010-11 academic year maximum
35household income and asset
levels. An applicant or renewal
36recipient who qualifies to be considered under the simplified needs
37test established by federal law for student assistance shall be
38presumed to meet the asset level test under this section.begin delete Prior toend delete
39begin insert Beforeend insert disbursing any Cal Grant funds, a qualifying institution
P12 1shall be obligated, under the terms of its institutional participation
2agreement with the commission, to resolve any conflicts that may
3exist in the data the institution possesses relating to that individual.
4(l) (1) “Qualifying institution” means an institution that
5complies with paragraphs (2) and (3) and is any of the following:
6(A) A California private or independent
postsecondary
7educational institution that participates in the Pell Grant Program
8and in at least two of the following federalbegin delete campus-basedend delete student
9aid programs:
10(i) Federalbegin delete Work-Study.end deletebegin insert Work-Study Program.end insert
11(ii) begin deletePerkins end deletebegin insertFederal Stafford end insertLoan Program.
12(iii) begin insertFederal end insertSupplemental
Educational Opportunity Grant
13Program.
14(B) A nonprofit institution headquartered and operating in
15California that certifies to the commission that 10 percent of the
16institution’s operating budget, as demonstrated in an audited
17financial statement, is expended for purposes of institutionally
18funded student financial aid in the form of grants, that demonstrates
19to the commission that it has the administrative capacity to
20administer the funds, that is accredited by the Western Association
21of Schools and Colleges, and that meets any other state-required
22criteria adopted by regulation by the commission in consultation
23with the Department of Finance. A regionally accredited institution
24that was deemed qualified by the commission to participate in the
25Cal Grant Program for the 2000-01 academic year shall retain its
26eligibility as long as it maintains its existing accreditation status.
27(C) A California public postsecondary educational institution.
28(2) (A) The institution shall provide information on where to
29access California license examination passage rates for the most
30recent available year from graduates of its undergraduate programs
31leading to employment for which passage of a California licensing
32examination is required, if that data is electronically available
33through the Internet Web site of a California licensing or regulatory
34agency. For purposes of this paragraph, “provide” may exclusively
35include placement of an Internet Web site address labeled as an
36access point for the data on the passage rates of recent program
37graduates on the Internet Web site where enrollment information
38is also located, on an Internet Web site that provides centralized
39admissions information for postsecondary educational systems
P13 1with multiple campuses, or on applications for enrollment or other
2program
information distributed to prospective students.
3(B) The institution shall be responsible for certifying to the
4commission compliance with the requirements of subparagraph
5(A).
6(3) (A) The commission shall certify bybegin delete Octoberend deletebegin insert
Novemberend insert 1
7of each year the institution’s latestbegin insert officialend insert three-year cohort default
8rate and graduation rate as most recently reported by the United
9States Department of Education.begin insert For purposes of this section, the
10graduation rate is the percentage of full-time, first-time degree or
11certificate-seeking undergraduate students who graduate in 150
12percent or less of the expected time to complete degree
13requirements as most recently reported publicly in any format,
14including preliminary data records, by the United States
15Department of Education.end insert
16(B) For purposes of the 2011-12 academic year, an otherwise
17qualifying institution with a three-year cohort default rate reported
18by the United States
Department of Education that is equal to or
19greater than 24.6 percent shall be ineligible for initial and renewal
20Cal Grant awards at thebegin delete institution, except as provided in begin insert institution.end insert
21subparagraph (F).end delete
22(C) For purposes of the 2012-13 academic year, and every
23academic year thereafter, an otherwise qualifying institution with
24a three-year cohort default rate that is equal to or greater than 15.5
25percent, as certified by the commission on October 1, 2011, and
26every year thereafter, shall be ineligible for initial and renewal Cal
27Grant awards at thebegin delete institution, except as provided in subparagraph begin insert
institution.end insert
28(F).end delete
29(D) (i) An otherwise qualifying institution that becomes
30ineligible under this paragraph for initial and renewal Cal Grant
31awards shall regain its eligibility for the academic year for which
32it satisfies the requirements established in subparagraph (B), (C),
33orbegin delete (G),end deletebegin insert (F),end insert as applicable.
34(ii) If the United States Department of Education corrects or
35revises an institution’s three-year cohort default rate or graduation
36rate that originally failed to satisfy the requirements established
37in subparagraph (B), (C), orbegin delete (G),end deletebegin insert
(F),end insert as applicable, and the
38correction or revision results in the institution’s three-year cohort
39default rate or graduation rate satisfying those requirements, that
40institution shall immediately regain its eligibility for the academic
P14 1year to which the corrected or revised three-year cohort default
2rate or graduation rate would have been applied.
3(E) An otherwise qualifying institution for which no three-year
4cohort default rate or graduation rate has been reported by the
5United States Department of Education shall be provisionally
6eligible to participate in the Cal Grant Program until a three-year
7cohort default rate or graduation rate has been reported for the
8institution by the United States Department of Education.
9(F) (i) An institution that is ineligible for initial and renewal
10Cal Grant awards at the institution under subparagraph (B), (C),
11or (G) shall be eligible for renewal Cal Grant awards for recipients
12who were enrolled in the ineligible institution during the academic
13year before the academic year for which the institution is ineligible
14and who choose to renew their Cal Grant awards to attend the
15ineligible institution. Cal Grant awards subject to this subparagraph
16shall be reduced as follows:
17(I) The maximum Cal Grant A and B awards specified in the
18annual Budget Act shall be reduced by 20 percent.
19(II) The reductions specified in this subparagraph shall not
20impact access costs as specified in subdivision (b) of Section
2169435.
22(ii) This subparagraph shall become inoperative on July 1, 2013.
end delete23(G)
end delete
24begin insert(F)end insert For purposes of the 2012-13 academic year, and every
25academic year thereafter, an otherwise qualifying institution with
26a graduation rate of 30 percent orbegin delete less for students taking 150 begin insert less,end insert as certified by the commission pursuant to
27percent or less of the expected time to complete degree
28requirements, as reported by the United States Department of
29Education andend delete
30subparagraph (A), shall be ineligible for initial and renewal Cal
31Grant awards at the institution, except as provided for in
32begin delete subparagraphs (F) and (I).end deletebegin insert
subparagraph (H).end insert
33(H)
end delete
34begin insert(G)end insert Notwithstanding any other law, the requirements of this
35paragraph shall not apply to institutions with 40 percent or less of
36undergraduate students borrowing federal student loans, using
37information reported to the United States Department of Education
38for the academic year two years before thebegin insert academicend insert year in which
39the commission is certifying the three-year cohort default rate or
40graduation rate pursuant to subparagraph (A).
P15 1(I)
end delete
2begin insert(H)end insert Notwithstanding subparagraphbegin delete (G),end deletebegin insert (F),end insert an otherwise
3qualifying institutionbegin delete withend deletebegin insert that maintainsend insert a three-year cohort default
4rate that is less than 15.5 percent and a graduation rate above 20
5percent for students taking 150 percent or less of the expected time
6to complete degree requirements, as certified by the commission
7pursuant to subparagraph (A), shall be eligible for initial and
8renewal Cal Grant awards at the institution through the 2016-17
9academic
year.
10(J)
end delete11begin insert(I)end insert The commission shall do all of the following:
12(i) Notify initial Cal Grant recipients seeking to attend, or
13attending, an institution that is ineligible for initial and renewal
14Cal Grant awards under subparagraph (C) orbegin delete (G)end deletebegin insert (F)end insert that the
15institution is ineligible for initial Cal Grant awards for the academic
16year for which the student received an initial Cal Grant award.
17(ii) Notify renewal Cal Grant recipients attending an institution
18that is ineligible for initial and renewal Cal Grant awards at the
19institution under subparagraph (C) orbegin delete (G)end deletebegin insert
(F)end insert that the student’s
20Cal Grant award will be reduced by 20 percent, or eliminated, as
21appropriate, if the student attends the ineligible institution in an
22academic year in which the institution is ineligible.
23(iii) Provide initial and renewal Cal Grant recipients seeking to
24attend, or attending, an institution that is ineligible for initial and
25renewal Cal Grant awards at the institution under subparagraph
26(C) orbegin delete (G)end deletebegin insert (F)end insert with a complete list of all California postsecondary
27educational institutions at which the student would be eligible to
28receive an unreduced Cal Grant award.
29(K) By January 1, 2013, the Legislative Analyst shall submit
30to the Legislature a report on the implementation of this paragraph.
31The report shall be prepared in consultation with the commission,
32and shall include policy recommendations for appropriate measures
33of default risk and other direct or indirect measures of quality or
34effectiveness in educational institutions participating in the Cal
35Grant Program, and appropriate scores for those measures. It is
36the intent of the Legislature that appropriate policy and fiscal
37
committees review the requirements of this paragraph and consider
38changes thereto.
39(m) “Satisfactory academic progress” means those criteria
40required by applicable federal standards published in Title 34 of
P16 1the Code of Federal Regulations. The commission may adopt
2regulations defining “satisfactory academic progress” in a manner
3that is consistent with those federal standards.
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