New Cal Grant bill would expand eligibility, bringing major changes to state financial aid program

Hundreds of thousands of additional California students, especially senior students, could be eligible for financial assistance through a proposed revision of the state’s scholarship program.

Two members of the California Democratic Assembly – Jose Medina of Riverside County and Kevin McCarty of Sacramento – recently tabled bill to simplify the Cal Grant program and expand eligibility to nearly 200,000 additional students.

“We’ve really rationed access to this Cal Grant program over the past few years, and we’ve created a very unique system here for cutting and dicing people and we should focus on getting people involved,” McCarty said on on Thursday during a round table discussion on the proposal. “This is really good, not just for students and helping them get down on debt, but also to help our economy.”

The bill, AB 1456, would lower or remove GPA requirements for Cal Grant awards and extend the awards to older students who are out of high school for more than a year. The new proposed framework also aims to shift the focus of the grant program from tuition fees and fee waivers to scholarships that can help students pay for food, accommodation, transportation and other essentials during their studies.

Tuition and fees at California’s community colleges are inherently low – $ 46 per unit, said Audrey Dow, senior vice president of the Campaign for College Opportunity, an advocacy group dedicated to expanding college access and increasing degrees dedicates. Dow is also a member of a group that developed the proposed changes to the Cal Grant.

“What students don’t have a grant for is their cost of living,” she said. “There is no money for housing, food, books, for all of these things.”

The reform bill was tabled earlier this month and must be approved by state lawmakers and signed by Governor Gavin Newsom before the proposed changes are implemented. In January Newsom tabled a budget proposal for the state that included a 3 percent increase in funding for higher education, and McCarty said it was possible to budget the new funding framework.

“The decline in the budget for COVID-19 last year has been a year-long problem. Ironically, with all the high earners in California, the economy is booming, ”he said. “Fund this [costs] hundreds of millions of dollars depending on how you look at it. But you can start. We think this is something we can do and we will do it in our assembly version of the budget this year. “

The Cal Grant Reform Work Group, led by the California Student Aid Commission, began devising a new framework for the Cal Grant program a few years ago – long before the pandemic began. In March, the group presented an initial framework to the California legislature. Facing a period of economic uncertainty, lawmakers urged the group to come up with a budget-neutral proposal, Dow said.

“Although we have a budget gain in this particular fiscal cycle, we know we are likely to face a recession in the years to come,” she said.

The proposed Cal Grant framework divides the program into two grand prizes: Cal Grant 2, which covers students in community colleges, and Cal Grant 4, which covers students in four-year institutions. Cal Grant 2 would guarantee California Community College students with no dependents and an expected family contribution of zero. Estimated family contribution is determined by the Free Federal Student Aid (FAFSA) application and, according to the California Student Aid Commission, correlates with an average household income of about $ 11,000.

Unlike the current eligibility model, students would not need to submit GPA certification to receive a Cal Grant 2 award, and the program would be available to older students outside of high school. Assuming the current level of funding, students would receive $ 1,250 each year for their college living, which is about $ 400 less than what students are currently receiving through the existing Cal Grant program. Students with relatives would be entitled to a higher scholarship.

Cal Grant 2 would not replace the California College Promise Grant, which waives tuition and fees for eligible community college students.

The proposed Cal Grant 4 would guarantee tuition and fee grants to students eligible for the federal Pell Grant attending public four-year college. Cal Grant 4 requires a GPA of 2.0 or higher, and the award is also available to senior students who are out of high school for more than a year. Cal Grant 4 would also reportedly award $ 9,084 to students at private, nonprofit organizations.

The existing California High School Entitlement Grant waives tuition and fees for community college students. Under the current Cal Grant program, students who have graduated from high school for more than a year will no longer be eligible for the state grant, even if they meet financial eligibility requirements.

Ineligible students are placed in a separate eligibility pool for the Cal Grant Competitive Awards, of which there are only 41,000 according to the California Student Aid Commission.

Nearly 300,000 students would be eligible for the eligibility grant if it wasn’t based on GPA requirements or excluded students who had graduated from high school for more than a year, Dow said. Instead, these students vie for the limited number of competitive scholarships. The new Cal Grant framework would eliminate the competitive grant.

The pandemic has made it clear why current admission requirements are not improving access to education for some California students. Enrollment in the state’s community college has slowed down during the pandemic, especially among Latinos and black men, Dow said. Many students sit out the year to work or take care of family members. If they later choose to return to college, they will no longer be eligible for the Eligibility Grant.

“I think we could really face an impending crisis where we have a number of community college students who would have enrolled straight out of high school but not because of the pandemic, and when they come back they were cut out. “That entitlement program,” Dow said.

California’s three higher education systems were reluctant to comment directly on AB 1456 and instead issued letters of support for student financial aid initiatives. Paul Feist, vice chancellor for communications at California Community Colleges, said the system had no formal position on the bill.

“For too long, California Community College students have had limited ability to access government grants to pay their total college bills,” Feist wrote in an email. “We look forward to continuing to fight for more funding so that our low-income students can thrive and thrive in our colleges.”

Spokesmen for the University of California system and the California State University system both said officials are still reviewing the bill.

“The university recognizes legislative efforts to better serve the financial needs of CSU students,” Toni Molle, director of strategic communications and public affairs at California State University, wrote in an email. “We are currently reviewing AB 1456 and will continue to work with lawmakers and the California Student Aid Commission to improve the Cal Grant program.”

Ryan King, assistant director of media relations in the office of the President of the University of California, made a similar statement.

“The University of California continues to provide extensive support for the California Student Aid Commission and various legislative proposals to modernize and expand the Cal Grant program,” King wrote. “As AB 1456 has just been introduced, we will continue to carefully review its specifics to see how it can help make it more affordable for students.”

The existing Cal Grant is intended for students attending institutions at the University of California, California State University, or California Community College – or qualifying at independent and professional colleges or technical schools in California, according to the California Student Aid Commission. There are currently three types of Cal Grants known as A, B, and C.

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