BILL ANALYSIS Ó
SB 440
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Date of Hearing: June 23, 2015
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
SB
440 (Committee on Education) - As Amended April 13, 2015
SENATE VOTE: 36-0
SUBJECT: Postsecondary education: institutions.
SUMMARY: Authorizes the withholding of registration privileges
from University of California (UC) and California State
University (CSU) students who are recipients of the DREAM Loan
Program if they have defaulted on their DREAM Loan.
EXISTING LAW:
1)Provides that, beginning January 1, 2013, AB 540 (Firebaugh),
Chapter 814, Statues of 2001, students are eligible to apply
for, and participate in, any student financial aid program
administered by the State of California to the full extent
permitted by federal law; and, requires the California Student
Aid Commission to establish procedures and forms that enable
AB 540 students to apply for, and participate in, all student
financial aid programs administered by the State of California
to the full extent permitted by federal law (Education Code
Section 69508.5).
2)Requires the CSU Trustees and the California Community
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Colleges (CCC) Board of Governors, and requests the UC
Regents, to establish procedures and forms that enable AB 540
students to apply for, and participate in, all student aid
programs administered by these segments (CCC, CSU, and UC) to
the full extent permitted by federal law (EC Section 66021.6).
3)Provides that a student attending the CCC, the CSU, or the UC
who is exempt from paying nonresident tuition under the
provisions of AB 540 is eligible to receive a scholarship
derived from nonstate funds received, for the purpose of
scholarships, by the segment at which he or she is a student
(EC Section 66021.7).
4)Establishes the California DREAM Loan Program, which may also
be referred as the DREAM Program (EC Section 70031).
5)Requires the CSU Trustees and UC Regents to adopt regulations
providing for the withholding of institutional services from
students or former students who have been notified in writing
at the student's or former student's last known address that
he or she is in default on a loan or loans under the DREAM
Program; and, specifies that the services withheld, as
specified, shall not include the withholding of registration
privileges (EC Section 70037).
FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS: Background. Existing law (as described above),
establishes the DREAM Loan Program. The DREAM Program specifies
that if a DREAM Loan recipient defaults on his or her loan, the
CSU or UC, as applicable, can withhold the following services
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from the recipient: 1) the provision of grades; 2) the
provision of transcripts; and, 3) the provision of diplomas.
Existing law also states that even with the default of the DREAM
Loan, a recipient can still be allowed to register for classes.
To note: All other loan programs whereby a student defaults on
a loan, allows the respective campus of the CSU or UC to
withhold registration privilege from the student.
Purpose of this measure. According to the Senate Committee on
Education, collective authors of this measure, SB 440 ensures
consistency with other financial aid programs whereby campuses
of the CSU and UC have the option to withhold registration
privileges should a student default on a loan regardless of the
loan program.
REGISTERED SUPPORT / OPPOSITION:
Support
California State University
Opposition
None on file.
SB 440
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Analysis Prepared by:Jeanice Warden / HIGHER ED. / (916)
319-3960