BILL ANALYSIS
SB 1382
Page 1
SENATE THIRD READING
SB 1382 (Veterans Affairs Committee)
As Amended April 5, 2010
Majority vote
SENATE VOTE :33-0
HIGHER EDUCATION 9-0
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|Ayes:|Block, Norby, Adams, | | |
| |Chesbro, Fong, Fuller, | | |
| |Galgiani, Portantino, | | |
| |Ruskin | | |
| | | | |
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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.
FISCAL EFFECT : This bill is keyed non-fiscal by Legislative
Counsel.
COMMENTS : 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. In general,
veterans' education benefits (VEB) are made available alongside
other federal financial aid programs, including grants, loans
and work-study programs. 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.
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. 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.
SB 1382
Page 2
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.
Analysis Prepared by : Sandra Fried / HIGHER ED. / (916)
319-3960
FN: 0005017