BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1382|
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CONSENT
Bill No: SB 1382
Author: Senate Veterans Affairs Committee
Amended: 4/5/10
Vote: 21
SENATE EDUCATION COMMITTEE : 8-0, 4/21/10
AYES: Romero, Huff, Alquist, Hancock, Liu, Price,
Simitian, Wyland
NO VOTE RECORDED: Maldonado
SUBJECT : Student financial aid: Cal Grant Program:
methodology
SOURCE : Author
DIGEST : This bill deletes the provision of law
requiring, for all new Cal Grant awards, the California
Student Aid Commission reduce "calculated financial need"
by a veterans' education benefit.
ANALYSIS :
Background
State . The California Student Aid Commission (Commission)
administers a variety of student financial aid grant and
loan programs including the Cal Grant A program. Cal Grant
A awards pay for the full systemwide fees at the University
of California (UC) and the California State University
(CSU); it provides tuition support at private California
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colleges and universities up to a maximum of $9,708. Cal
Grant A awards may be used for up to four-years full-time
attendance, with specified exceptions.
Federal . The Federal Department of Veteran's Affairs (DVA)
administers a variety of veteran's education assistance
benefits programs including the newly established Chapter
33, familiarly known as the "Post 9/11 GI bill," which
became operative in August 2009.
This bill deletes the provision of law requiring, for all
new Cal Grant awards, the Commission reduce "calculated
financial need" by a veterans' education benefit.
Comments
Need for the Bill . A present, the Commission uses federal
data, known as the federal needs analysis, to determine
student eligibility for Cal Grants. The formula subtracts
"family contributions" from the "cost of attendance" to
determine a students' Cal Grant needs. In 2009, the
federal law changed, eliminating veterans' education
benefits as part of the family contribution. In addition,
as a consequence of the federal law change, the federal
government has removed veterans' education benefits
information from the Free Application for Federal Student
Aid (FAFSA). The FAFSA is the one and only application
that the CSAC uses for Cal Grants. With this change, CSAC
is no longer able to easily capture this data from the Cal
Grant applicants. Without a change in statute, state law
will continue to conform to the now out-dated federal
standard and California will have to absorb the costs
associated with getting supplemental information.
Federal Higher Education Opportunity Act of 2008 (HEOA) .
HEOA made certain changes to federal law impacting how
veterans' educational benefits are treated for purposes of
the federal need analysis and the calculation of resources
that are available to meet the veteran's estimated
financial assistance. Beginning with the 2009-10 academic
year, veterans' educational benefits are not treated as
estimated financial assistance and will, accordingly, not
decrease the amount of federal need-based aid a veteran
student can receive.
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The recently enacted Post 9/11 veteran's education benefits
program appears to be fairly generous, although benefits
are pro-rated for less than full-time attendance and for
veterans with less than 36 months of active duty service.
Full benefits include:
1.Paying tuition and fees (up to $13,200 annually for
students attending California schools.
2.Monthly housing allowance (based on zip code of school:
e.g. $2,763 in San Francisco, $2,252 in Long Beach,
$1,716 in Sacramento and $952 in Ridgecrest).
3.Up to $1,000 annually for books and supplies.
4.Up to $1,200 for tutoring assistance.
5.Selected opportunities to transfer these benefits to a
spouse of a dependent child.
Needs-based Approach to Cal Grants . This bill will not
change the needs-based approach to awarding Cal Grant
awards.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
DLW:cm 4/26/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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