AB 1721, as introduced, Medina. Student financial aid: Cal Grant Program.
(1) The 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.
This bill would express the intent of the Legislature to renew California’s commitment to college affordability by increasing the aid available to needy students through expanding the Cal Grant Program.
(2) Under existing law, an award for access costs, as defined, under the Cal Grant B Entitlement Program is limited to no more than $1,551.
This bill would raise the amount of the maximum award for access costs under the Cal Grant B program to $3,000.
(3) Under existing law, to be eligible for an award under the California Community College Transfer Entitlement Program, an applicant may not be 28 years of age or older by December 31 of the award year, and is required to have attended a California community college in the academic year immediately preceding the academic year for which the award will be used, among other requirements.
This bill would instead provide that an applicant for an award under the California Community College Transfer Entitlement Program may not be 31 years of age or older by December 31 of the award year, and is required to have attended a California community college no more than 3 academic years before the academic year for which the award will be used, among other requirements.
(4) Under existing law, no more than a total of 25,750 Competitive Cal Grant A and B awards may be granted annually.
This bill would raise that limit to 30,000.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
(a) The Legislature finds and declares all of the
3(1) To remain economically competitive, California will need
4to produce 11,900,000 degrees and credentials by 2025, but the
5state is only estimated to produce 9,500,000, which would create
6a degree and credential attainment gap of 2,400,000 by 2025.
7(2) Overall, only 32 percent of students at California colleges
8complete credentials on time, and low-income students are much
9less likely than higher income students to enroll in or complete
11(3) A major factor in a student’s enrollment and success in
12college is his or her ability to pay for fees and tuition, textbooks,
13transportation, housing, food, and other access costs.
14(4) California has made an important investment in need-based
15financial aid for California’s college students through the Cal Grant
16Program and the BOG Fee Waiver Program of the Board of
17Governors of the California Community Colleges.
18(5) The Cal Grant Program awards more than one billion five
19hundred million dollars ($1,500,000,000) annually, and it is the
20largest state grant program in the nation in terms of dollars awarded
21to students. The BOG Fee Waiver Program is more extensive than
22any other “free community college” plan in the nation, and it
23provides almost one-half of all students of the California
P3 1Community Colleges, and more than 60 percent of full-time
2students of the California Community Colleges, with free tuition.
3(6) Despite California’s strong commitment to financial aid,
4access grants for qualifying students are insufficent to cover
5nontuition college costs, and many low-income students are left
6out of the program entirely.
7(7) Students at California’s community colleges are
8disproportionately more likely to be the first in their family to
9attend college, come from an immigrant background, or be
11(8) After taking into account the total cost of attendance and all
12federal, state, and institutional financial aid available for students,
13on average it is more expensive for a needy student to go to a
14California community college than to attend the University of
15California or the California State University.
16(9) The affordability challenge faced by California’s community
17college students stems from nontuition costs, and the solution to
18that challenge is to increase grant aid that covers nontuition costs.
19(10) The 1960 California Master Plan for Higher Education in
20California guarantees an affordable, high-quality education to
21every Californian who can benefit.
22(b) It is the intent of the Legislature to renew California’s
23commitment to college affordability by increasing the aid available
24to needy students through expanding the Cal Grant Program.
Section 69435 of the Education Code is amended to
(a) (1) A Cal Grant B award shall be used only for
28tuition, student fees, and access costs in a for-credit instructional
29program that is not less than one academic year in length.
30(2) The commission, or a qualifying institution pursuant to
31Article 8 (commencing with Section 69450), shall award access
32grants in a student’s first academic year. In subsequent years, the
33award shall include an additional amount to pay tuition or fees, or
34both, to attend college at a public or private four-year college or
35university or other qualifying institution for all Cal Grant B awards
36pursuant to paragraph (2) of subdivision (b) of Section 66021.2.
37In no event shall the total award in any year exceed the applicant’s
38calculated financial need.
39(3) Not more than 2 percent of new Cal Grant B recipients
40enrolling for the first time in an institution of postsecondary
P4 1education shall be eligible for payments for tuition or fees, or both,
2in their first academic year of attendance. The commission shall
3adopt regulations specifying the criteria used to determine which
4applicants, if any, receive both tuition and fees plus the access
5grant in the first year of enrollment. Priority shall be given to
6students with the lowest expected family contribution pursuant to
7Section 69432.7 and the highest level of academic merit.
8(b) An award for access costs under this article shall be in an
9annual amount not to exceed
begin delete one thousand five hundred fifty-one This amount
10dollars ($1,551).end delete
11may be adjusted in the annual Budget Act.
Section 69436 of the Education Code is amended to
(a) A student who was not awarded a Cal Grant A or
15B award pursuant to Article 2 (commencing with Section 69434)
16or Article 3 (commencing with Section 69435) at the time of his
17or her high school graduation but, at the time of transfer from a
18California community college to a qualifying baccalaureate
19program, meets all of the criteria set forth in subdivision (b), shall
20be entitled to a Cal Grant A or B award.
21(b) Any California resident transferring from a California
22community college to a qualifying institution that offers a
23baccalaureate degree is entitled to receive, and the commission,
24or a qualifying institution pursuant to Article 8 (commencing with
25Section 69450), shall award, a Cal Grant A or B award depending
26on the eligibility determined pursuant to subdivision (c), if all of
27the following criteria are met:
28(1) A complete official financial aid application has been
29submitted or postmarked pursuant to Section 69432.9, no later
30than the March 2 of the year immediately preceding the award
32(2) The student demonstrates financial need pursuant to Section
34(3) The student has earned a community college grade point
35average of at least 2.4 on a 4.0 scale and is eligible to transfer to
36a qualifying institution that offers a baccalaureate degree.
37(4) The student’s household has an income and asset level not
38exceeding the limits set forth in Section 69432.7.
39(5) The student is pursuing a baccalaureate degree that is offered
40by a qualifying institution.
P5 1(6) He or she is enrolled at least part time.
2(7) The student meets the general Cal Grant eligibility
3requirements set forth in Article 1 (commencing with Section
5(8) The student will not be
begin delete 28end delete years of age or older by
6December 31 of the award year.
7(9) The student graduated from a California high school or its
8equivalent during or after the 2000-01 academic year.
begin delete(A)end delete begin delete end delete begin deleteExcept as provided for in subparagraph (B), the end delete
10student attended a California community college in
begin delete theend delete academic
begin delete immediately precedingend delete the academic year for which the award will be used.
13(B) A student otherwise eligible to receive an award pursuant
14to this section, who attended a California community college in
15the 2011-12 academic year, may use the award for the 2012-13
16and 2013-14 academic years.
17(c) The amount and type of the award pursuant to this article
18shall be determined as follows:
19(1) For applicants with income and assets at or under the Cal
20Grant A limits, the award amount shall be the amount established
21pursuant to Article 2 (commencing with Section 69434).
22(2) For applicants with income and assets at or under the Cal
23Grant B limits, the award amount shall be the amount established
24pursuant to Article 3 (commencing with Section 69435).
25(d) (1) A student meeting the requirements of paragraph (9) of
26subdivision (b) by means of high school graduation, rather than
27its equivalent, shall be required to have graduated from a California
28high school, unless that California resident graduated from a high
29school outside of California due solely to orders received from a
30branch of the United States Armed Forces by that student or by
31that student’s parent or guardian that required that student to be
32outside of California at the time of high school graduation.
33(2) For the purposes of this article, both of the following are
34exempt from the requirements of subdivision (e) of Section 69433.9
35and paragraph (9) of subdivision (b) of this section:
36(A) A student for whom a claim under this article was paid prior
37to December 1, 2005.
38(B) A student for whom a claim under this article for the
392004-05 award year or the 2005-06 award year was or is paid on
40or after December 1, 2005, but no later than October 15, 2006.
P6 1(3) (A) The commission, or a qualifying
2to Article 8 (commencing with Section 69450), shall make
3preliminary awards to all applicants currently eligible for an award
4under this article. At the time an applicant receives a preliminary
5award, the commission, or a qualifying institution pursuant to
6Article 8 (commencing with Section 69450), shall require that
7applicant to affirm, in writing, under penalty of perjury, that he or
8she meets the requirements set forth in subdivision (e) of Section
969433.9, paragraph (9) of subdivision (b) of this section, and
10paragraph (1) of this subdivision. The commission, or a qualifying
11institution pursuant to Article 8 (commencing with Section 69450),
12shall notify each person who receives a preliminary award under
13this paragraph that his or her award is subject to an audit pursuant
14to subparagraph (B).
15(B) The commission shall select, at random, a minimum of 10
16percent of the new and renewal awards made under subparagraph
17(A), and shall require, prior to the disbursement of Cal Grant funds
18to the affected postsecondary institution, that the institution verify
19that the recipient meets the requirements of subdivision (e) of
20Section 69433.9, paragraph (9) of subdivision (b) of this section,
21and paragraph (1) of this subdivision. An award that is audited
22under this paragraph and found to be valid shall not be subject to
23a subsequent audit.
24(C) Pursuant to Section 69517.5, the commission shall seek
25repayment of any and all funds found to be improperly disbursed
26under this article.
27(D) On or before November 1 of each year, the commission
28shall submit a report to the Legislature and the Governor including,
29but not necessarily limited to, both of the following:
30(i) The number of awards made under this article in the
31preceding 12 months.
32(ii) The number of new and renewal awards selected, in the
33preceding 12 months, for verification under subparagraph (B), and
34the results of that verification with respect to students at the
35University of California, at the California State University, at
36independent nonprofit institutions, and at independent for-profit
Section 69437 of the Education Code is amended to
(a) Commencing with the 2001-02 academic year, and
2each academic year thereafter, there shall be established the
3Competitive Cal Grant A and B award program for students who
4did not receive a Cal Grant A or B entitlement award pursuant to
5Article 2 (commencing with Section 69434), Article 3
6(commencing with Section 69435), or Article 4 (commencing with
7Section 69436). Awards made under this section are not
8entitlements. The submission of an application by a student under
9this section shall not entitle that student to an award. The selection
10of students under this article shall be determined pursuant to
11subdivision (c) and other relevant criteria established by the
13(b) Commencing with the 2015-16 academic year, a total of
begin delete 25,750end delete Cal Grant A and B awards shall be granted
15annually under this article on a competitive basis for applicants
16who meet the general eligibility criteria established in Article 1
17(commencing with Section 69430) and the priorities established
18by the commission pursuant to subdivision (c).
19(1) Fifty percent of the awards referenced in this subdivision
20are available to all students, including California community
21college students, who meet the financial need and academic
22requirements established pursuant to this article. A student
23enrolling at a qualifying baccalaureate degree granting institution
24shall apply by the March 2 deadline. A California community
25college student is eligible to apply at the March 2 or the September
27(2) Fifty percent of the awards referenced in this subdivision
28are reserved for students who will be enrolled at a California
29community college. The commission shall establish a second
30application deadline of September 2 for community college
31students to apply for these awards effective with the fall term or
32semester of the 2001-02 academic year.
33(3) If any awards are not distributed pursuant to paragraphs (1)
34and (2) upon initial allocation of the awards under this article, the
35commission shall make awards to as many eligible students as
36possible, beginning with the students with the lowest expected
37family contribution and highest academic merit, consistent with
38the criteria adopted by the commission pursuant to subdivision
39(c), as practicable without exceeding an annual cumulative total
begin delete 25,750end delete awards.
P8 1(c) (1) On or before February 1, 2001, acting pursuant to a
2public hearing process that is consistent with the Bagley-Keene
3Open Meeting Act (Article 9 (commencing with Section 11120)
4of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
5Code), the commission shall establish selection criteria for Cal
6Grant A and B awards under the competitive program that give
7special consideration to disadvantaged students, taking into
8consideration those financial, educational, cultural, language,
9home, community, environmental, and other conditions that hamper
10a student’s access to, and ability to persist in, postsecondary
12(2) Additional consideration shall be given to both of the
14(A) Students pursuing Cal Grant B awards who reestablish their
15grade point averages.
16(B) Students who did not receive awards pursuant to Article 2
17(commencing with Section 69434), Article 3 (commencing with
18Section 69435), or Article 4 (commencing with Section 69436).
19(d) All other students who meet the eligibility requirements
20pursuant to Article 1 (commencing with Section 69430) are eligible
21to compete for an award pursuant to this article.