BILL ANALYSIS �
AB 2566
Page 1
Date of Hearing: April 29, 2014
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Das Williams, Chair
AB 2566 (Weber) - As Introduced: February 21, 2014
SUBJECT : Student financial aid: Cal Grant Program.
SUMMARY : Expands the timeframe after high school graduation
during which students are eligible for the Cal Grant Entitlement
Program by one additional academic year, to March 2 of the
second year after high school graduation, beginning in the
2015-16 award year.
EXISTING LAW :
1)Authorizes a variety of student financial aid grant and loan
programs, administered by the California Student Aid
Commission (CSAC), to provide grants to students to attend
college.
2)The Cal Grant programs, administered by CSAC, include both the
entitlement and the competitive Cal Grant awards. Eligibility
is based upon financial need, grade point average, California
residency, and other criteria.
3)Applications for Cal Grant Entitlement Programs are required
to be submitted by March 2 of the academic year of high school
graduation or its equivalent for the award year immediately
following the academic year of high school graduation.
FISCAL EFFECT : Unknown. However, according to the Senate
Appropriations Committee analysis of prior legislation, CSAC
anticipates implementation costs of $264,000 in the first year,
and $143,000 annually thereafter, for two permanent positions
and one limited-term position. Cal Grant awards: $35.1 million -
$70.2 million (General Fund) for increased awards in the first
year, the exact expenditure will be determined by the number of
awards actually paid. Costs would increase annually, as more
individuals become eligible.
COMMENTS : Purpose of this bill . According to the author, the
sticker price of an education at a four year college or
university has forced many qualified high school students to
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prolong their educational goals and to get a job and save enough
money to pay their tuition costs. The author notes that current
eligibility requirements for the Cal Grant A and B Entitlement
Program penalizes low income students for their inability to
access higher education immediately after high school
graduation. According to the author, expanding the time period
during which college applicants are entitled to apply for Cal
Grants would allow them to learn about financial aid, be able to
attend college, and earn degrees that will prepare them to
obtain high-wage jobs.
Cal Grant background . The Cal Grant Entitlement Program
guarantees financial aid awards to recent high school graduates
and community college transfer students who meet financial,
academic, and other eligibility requirements. Applicants must
apply within one year of high school graduation. The state also
provides a relatively small number of competitive Cal Grants to
students who do not qualify for entitlement awards, half of
which are set aside for community college students; these awards
are capped at 22,500, and demand far exceeds supply. Cal Grants
cover full systemwide tuition at the public universities for up
to four years and partly contribute to tuition costs at
nonpublic institutions. About 269,000 students received new or
renewed Cal Grant awards in 2012-13, totaling about $1.6
billion.
The Cal Grant A high school entitlement award provides
tuition/fee funding for the equivalent of four full-time years
at qualifying postsecondary institutions to eligible lower and
middle income high school graduates who have at least a 3.0
grade point average (GPA) on a four-point scale and apply within
one year of graduation.
The Cal Grant B high school entitlement award provides funds to
eligible low-income high school graduates who have at least a
2.0 GPA on a four-point scale and apply within one year of
graduation. The award provides up to $1,473 for books and
living expenses for the first year and each year following for
up to four years (or equivalent for four full time years).
After the first year, the award also provides tuition/fee
funding at qualifying postsecondary institutions.
The maximum tuition awards for Cal Grant A and B are equal to
the mandatory systemwide tuition fees at the University of
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California ($12,192) and the California State University
($5,472), $8,056 at private non-profit institutions and
WASC-accredited for-profit institutions, and $4,000 at private
for-profit institutions.
Prior legislation . AB 1241 (Weber), as passed by this
committee, would have extended the application timeframe for
three additional years. The bill was subsequently amended to
extend the timeframe for only one additional year, and was held
on suspense in the Senate Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
American Career College/West Coast University
Board of Governors of the California Community Colleges
California Competes
California State Student Association
Community College League of California
NAACP Los Angeles
National Council of La Raza
Public Advocates, Inc.
Southern California College Access Network
Student Senate for California Community Colleges
The Education-Trust West
The Institute for College Access and Success
University of California Student Association
Young Invincibles
Opposition
None on file.
Analysis Prepared by : Laura Metune / HIGHER ED. / (916)
319-3960