BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Gloria Romero, Chair
2009-2010 Regular Session
BILL NO: AB 1997
AUTHOR: Portantino
AMENDED: June 16, 2010
FISCAL COMM: Yes HEARING DATE: June 23, 2010
URGENCY: No CONSULTANT: Kathleen
Chavira
SUBJECT : Community College Financial Aid
KEY POLICY ISSUES
Should a voluntary pilot program to increase student
participation in state and federal financial aid programs
be established?
What should be the parameters of such a pilot?
SUMMARY
This bill requires the California Community College
Chancellor's Office (CCCCO) to establish a voluntary pilot
program to increase student participation in state and
federal financial aid programs, outlines the parameters of
the pilot, and requires the Legislative Analyst's Office
(LAO) to report to the Legislature on the results of the
pilot program and to make recommendations for its statewide
expansion.
BACKGROUND
Current law provides for a variety of student financial aid
programs including the Cal Grant programs and the Community
College Board of Governors (BOG) Fee Waiver Program.
Current law requires that eligibility for a Cal Grant and
the determination of financial need be accomplished using
the federal financial need methodology and application (the
Federal Application for Student Assistance, or FAFSA), and
that this application be used for all programs funded by
AB 1997
Page 2
the state or a public institution of post-secondary
education as well as all federal programs administered by a
postsecondary educational institution. Current law makes
an exception to this requirement for the BOG Fee Waiver
Program which is authorized to use a simplified application
designed for that sole purpose. (Education Code 69432.9,
69433)
Current law requires the CCCCO to develop a statement that
individual students will be asked to sign, which
acknowledges that federal and state funds are available to
assist with the costs of college and that information
regarding these programs, and assistance in applying for
those funds can be obtained at the financial aid office.
The Chancellor is required to request the colleges to
require students to sign this acknowledgment in the
application for enrollment at all campuses of the
California Community Colleges.
Current law also requires the CCCCO to develop a statement
to individual students receiving the BOG Fee Waiver, who
did not apply for federal student aid, informing them about
the benefits of the federal programs, the application
process, and the availability of assistance to apply and to
request colleges to provide this statement to all students
who meet this description. (EC 76071)
ANALYSIS
This bill :
1) Requires the CCCCO to establish a voluntary pilot
program to increase student participation in state and
federal financial aid programs. More specifically it:
a) Requires the Chancellor to select
no more than 10 campuses from those that
volunteer to participate.
b) Requires, to the extent possible,
that the geographic, economic and demographic
diversity of participating campuses be ensured.
AB 1997
Page 3
c) Establishes the following two
target populations of potentially eligible
students to be identified for participation in
the pilot program:
i) Those who complete an
application for either a BOG fee waiver or a
FAFSA.
ii) Those who do not receive any
campus, state, or federal aid.
d) Establishes the goal of the pilot
program to increase student participation in both
state and federal financial aid programs by
actions that include, but are not limited to:
i) Identifying strategies
and best practices for increasing the number
of students who submit the Free Application
for Federal Student Aid (FAFSA).
ii) Examining and developing
strategies for increasing student
participation in financial aid programs
beyond the BOG Fee Waiver program.
2) Encourages the CCCCO to pursue both private and
federal funding to support implementation and
operation of the pilot program.
3) Requires the CCCCO to provide information on the
strategies and techniques employed by participating
campuses and data on student participation in state
and federal financial aid programs to the Legislative
Analyst's Office (LAO) by January 10, 2013.
4) Requires the LAO, based upon the information received,
to:
a) Report to the Legislature on the
results of the pilot program.
AB 1997
Page 4
b) Make recommendations for statewide
expansion of the pilot.
c) Include in its report a
statistical analysis of financial aid
applications and awards before and after the
pilot and a summary of the major strategies and
techniques employed by participating campuses.
5) Repeals these provisions as of January 1, 2014.
STAFF COMMENTS
1) Need for the bill . Several recent reports have
highlighted the fact that CCC students are not
receiving all of the federal financial aid support
that is available to them. A research brief issued by
MPR Associates, Inc. in October 2009 (and based upon
2006-07 enrollment data) noted that fewer than 230,000
(about 10 percent) of degree seeking students at the
CCC received federal Pell Grants. The most common form
of financial aid was a BOG fee waiver, given to
540,000 students (26 percent of enrolled students).
About 305,000 of these students received only a fee
waiver and of those, 110,00 applied for federal aid
but did not receive it with the most common reasons
for not qualifying being 1) they were part-time, 2)
their income or expected family contribution was too
high, or 3) they did not meet citizenship, academic,
or other requirements for federal financial aid.
This bill attempts to gather specific information on
the reasons and
strategies specific to California's students and community
colleges to
determine why California community college students do not
submit the
FAFSA in greater numbers and to identify intervention
strategies to increase their participation in state and
federal financial aid programs.
2) What is the Pell Grant Program ? The federal Pell
Grant program provides need-based grants to low-income
AB 1997
Page 5
undergraduates (and certain post baccalaureate
students) to promote access to postsecondary
education. Grant amounts are dependent on: the
student's expected family contribution; the cost of
attendance (as determined by the institution); the
student's enrollment status (full-time or part-time);
and whether the student attends for a full academic
year or less. Financial need is determined using a
standard formula based on information reported by the
applicant on the FAFSA. Students must file a FAFSA in
order to receive a Pell Grant. For 2010-11, the
maximum amount for a Pell Grant will be $5,550 but the
actual amount of a Pell Grant will vary from student
to student depending on their specific circumstances.
3) Why a pilot program ? Much of the information being
disseminated on potential Pell Grant participation at
the California Community Colleges and projections
regarding the amount of potential Pell Grant dollars
"left on the table" derive from assumptions based upon
national, rather than California-specific information
and data. A pilot program would allow for closer
examination of the unique student population served by
the California Community Colleges in order to identify
best practices for ensuring the colleges' commitment
to access while maximizing the potential for
California students to benefit from federal financial
aid programs.
4) Why these specific target populations ? According to
the MPR research brief, almost 80 percent of BOG fee
waiver recipients (431,000) qualified because they
filed a FAFSA and were found to have financial need
according to the federal formula (i.e. 80 percent of
BOG waiver recipients completed the FAFSA). The
remaining 20 percent (111,000) received a BOG waiver
using the simplified form. The research brief notes
that many of these students may have been ineligible
for federal financial aid. It also identifies over
1.5 million students within the community colleges who
receive no financial aid at all. This bill creates a
pilot program that focuses upon students potentially
eligible for federal financial aid within two groups;
AB 1997
Page 6
1) BOG Fee Waiver recipients who do not submit a FAFSA
and 2) other enrolled students who do not apply for
any campus state or federal assistance.
Staff recommends the bill be amended to correct a
drafting error
regarding the target populations on page 3 line 5 to delete
"or" and insert "but
do not complete a" in order to ensure the pilot targets
students who
submit a BOG Fee Waiver application but not a FAFSA.
5) Other relevant research findings . In May 2010, the
College Board released its report, The Financial Aid
Challenge: Successful Practices that Address the
Underutilization of Financial Aid in Community
Colleges. The report noted that in 2007-08,
nationally, only 57.8 percent of Pell-eligible
students who attended community colleges (full-time or
part-time) applied for federal financial aid, versus
76.8 percent of Pell-eligible students at four-year
public institutions. The stated goal of the report
was to identify successful practices that increase
FAFSA filing rates and to help more community college
students receive financial aid. Among the report
recommendations was a list of steps which could be
taken on community college campuses which included,
among other things:
a) Providing bilingual services and materials.
b) Offering evening and weekend office hours.
c) Use of multi-language media, online
resources and local opinion leaders to drive
awareness.
d) Linking financial aid application and
follow-up with college enrollment and
registration.
e) Communicating financial aid opportunities in
a culturally and linguistically appropriate
manner.
f) Partnering with other education institutions
or community organization to offer financial aid
AB 1997
Page 7
counseling to all students.
g) Surveying potential students to learn where
students get information about the community
college and what they know about financial aid
prior to enrolling.
h) Consolidation of resources with area
community colleges or across the state to
establish a common system for financial aid
administration.
SUPPORT
Board of Governors of the California Community Colleges
OPPOSITION
None received on this version.