BILL ANALYSIS
SB 1382
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Date of Hearing: June 22, 2010
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Marty Block, Chair
SB 1382 (Committee on Veterans Affairs) - As Amended: April 5,
2010
SENATE VOTE : 33-0
SUBJECT : Student financial aid: Cal Grant Program:
methodology.
SUMMARY : Deletes the provision of law requiring, for all new
Cal Grant awards, the California Student Aid Commission (CSAC)
reduce "calculated financial need" by a veterans' education
benefit.
EXISTING LAW :
1)State: CSAC 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 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.
2)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.
FISCAL EFFECT : This bill is keyed non-fiscal by Legislative
Counsel.
COMMENTS : Background : Federal educational assistance programs
for veterans have been authorized by federal law since 1944,
including the Montgomery GI Bill and the Post-9/11 GI Bill. The
latter provides generous educational benefits, including (when
fully eligible):
1)Paying tuition and fees (up to $13,200 annually for students
attending California schools).
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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 dependent child.
In general, veterans' education benefits (VEB) are made
available alongside other federal financial aid programs, which
are authorized in the federal Higher Education Act of 1965, as
amended. These programs include grants, loans and work-study
programs. Prior to 2009, a veteran's federal financial aid
package was determined by subtracting the expected family
contribution (EFC), including VEB, from his or her cost of
attendance (COA), which are obtained from the Free Application
for Federal Student Aid (FAFSA) submitted by the student.
Need for the bill : State law mandates that CSAC use the same
formula as the federal government for calculating student need
to award Cal Grants, and requires the calculation for financial
need be consistent with the methodology used by CSAC in the
2000-01 academic year.
However, in 2009, the federal law changed, eliminating VEB as a
financial resource. The change ensures that a student's VEB
cannot be used to decrease the amount of federal-need based aid
the veteran student can receive. As a consequence of the
federal law change, the federal government has removed VEB
information from the FAFSA-the only application that CSAC uses
to determine Cal Grant eligibility and awards. Thus, without a
change in statute, state law will continue to conform to the now
out-dated federal methodology for calculating a veteran
student's new Cal Grant award, and California will have to
absorb the costs associated with getting supplemental VEB
information, since the information is no longer included on the
FAFSA.
How would this affect a veteran student's Cal Grant award ? This
would allow veteran students' to keep more of their
non-tuition-specific federal financial aid. If a veteran
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student's tuition is covered by another financial resource (such
as a VEB or a tuition-specific private scholarship), the student
would not receive a Cal Grant payment. However, if the VEB did
not cover their tuition, the student would receive a Cal Grant.
This measure will not change the needs-based approach to
awarding Cal Grant awards.
REGISTERED SUPPORT / OPPOSITION :
Support
California State University
Opposition
None on file.
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960