AB 3153: Student financial aid: Cal Grants: summer term students.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-05-25
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. The program prohibits an applicant from receiving one or a combination of program awards in excess of the amount equivalent to the award level for a total of a 4-year period of full-time attendance in an undergraduate program, except as provided, and specifies that the aggregate amount a student may receive in a 4-year period may not be increased as a result of accelerating his or her progress to a degree by attending summer terms, sessions, or quarters. The program provides that Cal Grant A awards and Cal Grant B awards may be renewed for a total of the equivalent of 4 years of full-time attendance in an undergraduate program, except as provided.
This bill would, notwithstanding the provision prohibiting a student from receiving a larger total amount of aid by accelerating his or her progress towards a degree by attending summer school terms, sessions, or quarters, except for students who have transferred to a 4-year higher education institution from a community college, make students who are eligible to receive a Cal Grant A award or Cal Grant B award eligible to receive a Summer Cal Grant award, in addition to receiving a Cal Grant A award or Cal Grant B award, for a total of 2 summer terms of up to 9 units of enrollment, or the quarter equivalent, per term for purposes of pursuing timely completion of a baccalaureate degree at a public postsecondary educational institution. The bill would, however, make students who have transferred to a 4-year qualifying institution from a community college and who are eligible to receive a Cal Grant A or Cal Grant B award eligible to receive a Summer Cal Grant award, in addition to receiving a Cal Grant A award or a Cal Grant B award, for one summer term of up to 9 units of enrollment, or the quarter equivalent. The bill would provide that Summer Cal Grant awards shall not be subject to or count against the 4 years of full-time attendance eligibility limitation that applies for purposes of Cal Grant A award and Cal Grant B award renewals.
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. The program prohibits an applicant from receiving one or a combination of program awards in excess of the amount equivalent to the award level for a total of a 4-year period of full-time attendance in an undergraduate program, except as provided, and specifies that the aggregate amount a student may receive in a 4-year period may not be increased as a result of accelerating his or her progress to a degree by attending summer terms, sessions, or quarters. The program provides that Cal Grant A awards and Cal Grant B awards may be renewed for a total of the equivalent of 4 years of full-time attendance in an undergraduate program, except as provided.
This bill would delete would, notwithstanding the provision prohibiting a student from receiving a larger total amount of aid by accelerating his or her progress towards a degree by attending summer school terms, sessions, or quarters. The bill would instead require that a students attendance in the equivalent of 2 summer sessions or terms of full-time attendance be included in the 4 years of full-time attendance in an undergraduate program for which a student may receive a Cal Grant Program award. quarters, make students who are eligible to receive a Cal Grant A award or Cal Grant B award eligible to receive a Summer Cal Grant award, in addition to receiving a Cal Grant A award or Cal Grant B award, for a total of 2 summer terms of up to 9 units of enrollment, or the quarter equivalent, for purposes of pursuing timely completion of a baccalaureate degree at a public postsecondary educational institution. The bill would provide that Summer Cal Grant awards shall not be subject to or count against the 4 years of full-time attendance eligibility limitation that applies for purposes of Cal Grant A award and Cal Grant B award renewals.
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. The program prohibits an applicant from receiving one or a combination of program awards in excess of the amount equivalent to the award level for a total of a 4-year period of full-time attendance in an undergraduate program, except as provided, and specifies that the aggregate amount a student may receive in a 4-year period may not be increased as a result of accelerating his or her progress to a degree by attending summer terms, sessions, or quarters.
This bill would delete the provision prohibiting a student from receiving a larger total amount of aid by accelerating his or her progress towards a degree by attending summer school terms, sessions, or quarters. The bill would instead require that a students attendance in the equivalent of 2 summer sessions or terms of full-time attendance be included in the 4 years of full-time attendance in an undergraduate program for which a student may receive a Cal Grant Program award.
Existing law establishes the University of California, the California State University, and the California Community Colleges as the 3 segments of public postsecondary education in this state. Existing law establishes various programs, such as the Cal Grant Program, that provide state funding for student financial aid.This bill would express the intent of the Legislature to enact legislation to provide financial aid for students attending summer terms in public postsecondary educational institutions.Existing law establishes the University of California, the California State University, and the California Community Colleges as the 3 segments of public postsecondary education in this state. Existing law establishes various programs, such as the Cal Grant Program, that provide state funding for student financial aid.
This bill would express the intent of the Legislature to enact legislation to provide financial aid for students attending summer terms in public postsecondary educational institutions.
As used in this chapter, the following terms have the following meanings:
(a)An academic year is July 1 to June 30, inclusive. The starting date of a session shall determine the academic year in which it is included.
(b)Access costs means living expenses and expenses for transportation, supplies, and books.
(c)Award year means one academic year, or the equivalent, of attendance at a qualifying institution.
(d)College grade point average and community college grade point average mean a grade point average calculated on the basis of all college work completed, except for nontransferable units and courses not counted in the computation for admission to a California public institution of higher education that grants a baccalaureate degree.
(e)Commission means the Student Aid Commission.
(f)Enrollment status means part- or full-time status.
(1)Part time, for purposes of Cal Grant eligibility, means 6 to 11 semester units, inclusive, or the equivalent.
(2)Full time, for purposes of Cal Grant eligibility, means 12 or more semester units or the equivalent.
(g)Expected family contribution, with respect to an applicant, shall be determined using the federal methodology pursuant to subdivision (a) of Section 69506 (as established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.)) and applicable rules and regulations adopted by the commission.
(h)High school grade point average means a grade point average calculated on a 4.0 scale, using all academic coursework, for the sophomore year, the summer following the sophomore year, the junior year, and the summer following the junior year, excluding physical education, Reserve Officers Training Corps (ROTC), and remedial courses, and computed pursuant to regulations of the commission. However, for high school graduates who apply after their senior year, high school grade point average includes senior year coursework.
(i)Instructional program of not less than one academic year means a program of study that results in the award of an associate or baccalaureate degree or certificate requiring at least 24 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.
(j)Instructional program of not less than two academic years means a program of study that results in the award of an associate or baccalaureate degree requiring at least 48 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.
(k)(1)Maximum household income and asset levels means the applicable household income and household asset levels for participants, including new applicants and renewing recipients, in the Cal Grant Program, as defined and adopted in regulations by the commission for the 200102 academic year, which shall be set pursuant to the following income and asset ceiling amounts:
CAL GRANT PROGRAM INCOME CEILINGS |
Cal Grant A, | Cal Grant B | |
Dependent and Independent students with dependents* | ||
Family Size | ||
Six or more | $74,100 | $40,700 |
Five | $68,700 | $37,700 |
Four | $64,100 | $33,700 |
Three | $59,000 | $30,300 |
Two | $57,600 | $26,900 |
| ||
Single, no dependents | $23,500 | $23,500 |
Married | $26,900 | $26,900 |
*Applies to independent students with dependents other than a
spouse.
CAL GRANT PROGRAM ASSET CEILINGS |
Cal Grant A, | Cal Grant B | |
|
|
|
Independent | $23,600 | $23,600 |
**Applies to independent students with dependents other than a
spouse.
(2)The commission shall annually adjust the maximum household income and asset levels based on the percentage change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIIIB of the California Constitution. The maximum household income and asset levels applicable to a renewing recipient shall be the greater of the adjusted maximum household income and asset levels or the maximum household income and asset levels at the time of the renewing recipients initial Cal Grant award. For a recipient who was initially awarded a Cal Grant for an academic year before the 201112 academic year, the maximum household income and asset levels shall be the greater of the adjusted maximum household income and asset levels or the 201011 academic year maximum household income and asset levels. An applicant or renewal recipient who qualifies to be considered under the simplified needs test established by federal law for student assistance shall be presumed to meet the asset level test under this section. Before disbursing any Cal Grant funds, a qualifying institution shall be obligated, under the terms of its institutional participation agreement with the commission, to resolve any conflicts that may exist in the data the institution possesses relating to that individual.
(l)(1)Qualifying institution means an institution that complies with paragraphs (2) and (3) and is any of the following:
(A)A California private or independent postsecondary educational institution that participates in the Pell Grant Program and in at least two of the following federal student aid programs:
(i)Federal Work-Study Program.
(ii)Federal Stafford Loan Program.
(iii)Federal Supplemental Educational Opportunity Grant Program.
(B)A nonprofit institution headquartered and operating in California that certifies to the commission that 10 percent of the institutions operating budget, as demonstrated in an audited financial statement, is expended for purposes of institutionally funded student financial aid in the form of grants, that demonstrates to the commission that it has the administrative capacity to administer the funds, that is accredited by the Western Association of Schools and Colleges, and that meets any other state-required criteria adopted by regulation by the commission in consultation with the Department of Finance. A regionally accredited institution that was deemed qualified by the commission to participate in the Cal Grant Program for the 200001 academic year shall retain its eligibility as long as it maintains its existing accreditation status.
(C)A California public postsecondary educational institution.
(2)(A)The institution shall provide information on where to access California license examination passage rates for the most recent available year from graduates of its undergraduate programs leading to employment for which passage of a California licensing examination is required, if that data is electronically available through the Internet Web site of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an Internet Web site address labeled as an access point for the data on the passage rates of recent program graduates on the Internet Web site where enrollment information is also located, on an Internet Web site that provides centralized admissions information for postsecondary educational systems with multiple campuses, or on applications for enrollment or other program information distributed to prospective students.
(B)The institution shall be responsible for certifying to the commission compliance with the requirements of subparagraph (A).
(3)(A)The commission shall certify by November 1 of each year the institutions latest official three-year cohort default rate and graduation rate as most recently reported by the United States Department of Education. For purposes of this section, the graduation rate is the percentage of full-time, first-time degree or certificate-seeking undergraduate students who graduate in 150 percent or less of the expected time to complete degree requirements as most recently reported publicly in any format, including preliminary data records, by the United States Department of Education.
(B)For purposes of the 201112 academic year, an otherwise qualifying institution with a three-year cohort default rate reported by the United States Department of Education that is equal to or greater than 24.6 percent shall be ineligible for initial and renewal Cal Grant awards at the institution.
(C)For purposes of the 201213 academic year, and every academic year thereafter, an otherwise qualifying institution with a three-year cohort default rate that is equal to or greater than 15.5 percent, as certified by the commission on October 1, 2011, and every year thereafter, shall be ineligible for initial and renewal Cal Grant awards at the institution.
(D)(i)An otherwise qualifying institution that becomes ineligible under this paragraph for initial and renewal Cal Grant awards shall regain its eligibility for the academic year for which it satisfies the requirements established in subparagraph (B), (C), or (F), as applicable.
(ii)If the United States Department of Education corrects or revises an institutions three-year cohort default rate or graduation rate that originally failed to satisfy the requirements established in subparagraph (B), (C), or (F), as applicable, and the correction or revision results in the institutions three-year cohort default rate or graduation rate satisfying those requirements, that institution shall immediately regain its eligibility for the academic year to which the corrected or revised three-year cohort default rate or graduation rate would have been applied.
(E)An otherwise qualifying institution for which no three-year cohort default rate or graduation rate has been reported by the United States Department of Education shall be provisionally eligible to participate in the Cal Grant Program until a three-year cohort default rate or graduation rate has been reported for the institution by the United States Department of Education.
(F)For purposes of the 201213 academic year, and every academic year thereafter, an otherwise qualifying institution with a graduation rate of 30 percent or less, as certified by the commission pursuant to subparagraph (A), shall be ineligible for initial and renewal Cal Grant awards at the institution, except as provided for in subparagraph (H).
(G)Notwithstanding any other law, the requirements of this paragraph shall not apply to institutions with 40 percent or less of undergraduate students borrowing federal student loans, using information reported to the United States Department of Education for the academic year two years before the academic year in which the commission is certifying the three-year cohort default rate or graduation rate pursuant to subparagraph (A).
(H)Notwithstanding subparagraph (F), an otherwise qualifying institution that maintains a three-year cohort default rate that is less than 15.5 percent and a graduation rate above 20 percent for students taking 150 percent or less of the expected time to complete degree requirements, as certified by the commission pursuant to subparagraph (A), shall be eligible for initial and renewal Cal Grant awards at the institution through the 201617 academic year.
(I)The commission shall do all of the following:
(i)Notify initial Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards under subparagraph (C) or (F) that the institution is ineligible for initial Cal Grant awards for the academic year for which the student received an initial Cal Grant award.
(ii)Notify renewal Cal Grant recipients attending an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) that the students Cal Grant award will be reduced by 20 percent, or eliminated, as appropriate, if the student attends the ineligible institution in an academic year in which the institution is ineligible.
(iii)Provide initial and renewal Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) with a complete list of all California postsecondary educational institutions at which the student would be eligible to receive an unreduced Cal Grant award.
(iv)(I) Establish an appeal process for an otherwise qualifying institution that fails to satisfy the three-year cohort default rate and graduation rate requirements in subparagraphs (C) and (F), respectively.
(II)The commission may grant an appeal for an academic year only if the commission has determined the institution has a cohort size of 20 individuals or less and the cohort is not representative of the overall institutional performance.
(m)Satisfactory academic progress means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. The commission may adopt regulations defining satisfactory academic progress in a manner that is consistent with those federal standards.
(n)Summer term means one or more periods of instruction for credit in a baccalaureate degree program that occurs after the conclusion of the spring semester or quarter and prior to commencement of the fall semester or quarter.
SEC. 2.Section 69433.5 of the Education Code is amended to read:69433.5.(a)Only a resident of California, as determined by the commission pursuant to Part 41 (commencing with Section 68000), is eligible for an initial Cal Grant award. The recipient shall remain eligible for award renewal only if he or she is a California resident, in attendance, and making satisfactory academic progress at a qualifying institution, as determined by the commission.
(b)A part-time student shall not be discriminated against in the selection of Cal Grant Program award recipients, and an award to a part-time student shall be approximately proportional to the time the student spends in the instructional program, as determined by the commission. A first-time Cal Grant Program award recipient who is a part-time student shall be eligible for a full-time renewal award if he or she becomes a full-time student.
(c)Cal Grant Program awards shall be awarded without regard to race, religion, creed, sex, sexual orientation, gender identity, gender expression, or age.
(d)An applicant shall not receive more than one type of Cal Grant Program award concurrently. An applicant shall not:
(1)Receive one or a combination of Cal Grant Program awards in excess of the amount equivalent to the award level for a total of four years of full-time attendance in an undergraduate program, except as provided in subdivision (g) and Section 69433.6.
(2)Have obtained a baccalaureate degree before receiving a Cal Grant Program award.
(e)A Cal Grant Program award, except as provided in Section 69440, may only be used for educational expenses of a program of study leading directly to an undergraduate degree or certificate, or for expenses of undergraduate coursework in a program of study leading directly to a first professional degree, but for which no baccalaureate degree is awarded.
(f)(1)The commission shall, for students who accelerate college attendance, increase the amount of the award in proportion to the period of additional attendance resulting from attendance in classes that fulfill requirements or electives for graduation during summer terms, sessions, or quarters.
(2)In the aggregate, the total amount a student may receive in a four-year period may not be increased as a result of the student accelerating his or her progress to a degree by attending summer terms, sessions, or quarters.
(g)(1)Notwithstanding paragraph (2) of subdivision (f), except as provided in paragraph (2), a student who is eligible to receive a Cal Grant A award or Cal Grant B award shall be eligible to receive a Summer Cal Grant award, in addition to receiving a Cal Grant A award or Cal Grant B award, for two summer terms of up to nine units of enrollment, or the quarter equivalent, per term for purposes of pursuing timely completion of a baccalaureate degree at a public postsecondary educational institution.
(2)Notwithstanding paragraph (2) of subdivision (f), a student who is eligible to receive a Cal Grant A award or Cal Grant B award who has transferred to a 4-year qualifying institution from a community college shall be eligible to receive a Summer Cal Grant award, in addition to receiving a Cal Grant A award or Cal Grant B award, for one summer term of up to nine units of enrollment, or the quarter equivalent.
(h)The commission shall notify Cal Grant award recipients of the availability of funding for the summer term, session, or quarter through prominent notice in financial aid award letters, materials, guides, electronic information, and other means that may include, but not necessarily be limited to, surveys, newspaper articles, or attachments to communications from the commission and any other published documents.
(i)The commission may require, by the adoption of rules and regulations, the production of reports, accounting, documents, or other necessary statements from the award recipient and the college or university of attendance pertaining to the use or application of the award.
(j)A Cal Grant Program award may be utilized only at a qualifying institution.
(k)A recipient who initially qualified for both a Cal Grant A award and a Cal Grant B award, and received a Cal Grant B award, may be awarded a renewal Cal Grant A award if that recipient subsequently became ineligible for a renewal Cal Grant B award and meets the applicable Cal Grant A financial need and income and asset criteria.
SEC. 3.Section 69433.6 of the Education Code is amended to read:69433.6.(a)(1)Cal Grant A awards and Cal Grant B awards may be renewed for a total of the equivalent of four years of full-time attendance in an undergraduate program provided that minimum financial need as defined in paragraph (3) of subdivision (b) of Section 69432.9 continues to exist. Commencing with the 200102 academic year, the total number of years of eligibility for grants pursuant to this section shall be based on the students educational level in his or her course of study as designated by the institution of attendance when the recipient initially receives payment for a grant.
(2)Summer Cal Grant awards described in subdivision (g) of Section 69433.5 shall not be subject to or count against the four years of full-time attendance eligibility limitation that applies for purposes of Cal Grant A award and Cal Grant B award renewals, as described in paragraph (1).
(b)(1)Commencing with the 201415 academic year, a recipient who was determined to be ineligible for a renewal award in the 201213 or 201314 academic year because he or she exceeded the maximum household income or asset level established by subdivision (k) of Section 69432.7, or failed to meet the minimum need threshold established by paragraph (3) of subdivision (b) of Section 69432.9, shall be eligible to receive a renewal award if the recipient meets all program eligibility requirements for the program from which he or she was previously disqualified and the recipient has remaining renewal award eligibility. For purposes of determining a students remaining renewal award eligibility, an academic year during which a student was ineligible shall reduce his or her renewal award eligibility by one full-time equivalent year.
(2)Commencing with the 201516 academic year, a recipient who is determined to be ineligible for a renewal award because, during the immediately preceding academic year, he or she exceeded the maximum household income or asset level established by subdivision (k) of Section 69432.7, or failed to meet the minimum need threshold established by paragraph (3) of subdivision (b) of Section 69432.9, shall be eligible to receive a renewal award if the recipient meets all program eligibility requirements for the program from which he or she was previously disqualified and the recipient has remaining renewal award eligibility. For purposes of determining a students remaining renewal award eligibility, an academic year during which a student was ineligible shall reduce his or her renewal award eligibility by one full-time equivalent year.
(c)For a student enrolled in an institutionally prescribed five-year undergraduate program, Cal Grant A awards and Cal Grant B awards may be renewed for a total of five years of full-time attendance, provided that minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.
(d)(1)A Cal Grant Program award recipient who has completed a baccalaureate degree, and who has been admitted to and is enrolled in a program of professional teacher preparation at an institution approved by the California Commission on Teacher Credentialing is eligible for, but not entitled to, renewal of a Cal Grant Program award for an additional year of full-time attendance, if minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.
(2)Payment for an additional year is limited to only those courses required for an initial teaching authorization. An award made under this subdivision may not be used for other courses.
(3)A students Cal Grant Program renewal eligibility shall not have lapsed more than 15 months before the payment of an award for purposes of this subdivision.
As used in this chapter, the following terms have the following meanings:
(a)An academic year is July 1 to June 30, inclusive. The starting date of a session shall determine the academic year in which it is included.
(b)Access costs means living expenses and expenses for transportation, supplies, and books.
(c)Award year means one academic year, or the equivalent, of attendance at a qualifying institution.
(d)College grade point average and community college grade point average mean a grade point average calculated on the basis of all college work completed, except for nontransferable units and courses not counted in the computation for admission to a California public institution of higher education that grants a baccalaureate degree.
(e)Commission means the Student Aid Commission.
(f)Enrollment status means part- or full-time status.
(1)Part time, for purposes of Cal Grant eligibility, means 6 to 11 semester units, inclusive, or the equivalent.
(2)Full time, for purposes of Cal Grant eligibility, means 12 or more semester units or the equivalent.
(g)Expected family contribution, with respect to an applicant, shall be determined using the federal methodology pursuant to subdivision (a) of Section 69506 (as established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.)) and applicable rules and regulations adopted by the commission.
(h)High school grade point average means a grade point average calculated on a 4.0 scale, using all academic coursework, for the sophomore year, the summer following the sophomore year, the junior year, and the summer following the junior year, excluding physical education, Reserve Officers Training Corps (ROTC), and remedial courses, and computed pursuant to regulations of the commission. However, for high school graduates who apply after their senior year, high school grade point average includes senior year coursework.
(i)Instructional program of not less than one academic year means a program of study that results in the award of an associate or baccalaureate degree or certificate requiring at least 24 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.
(j)Instructional program of not less than two academic years means a program of study that results in the award of an associate or baccalaureate degree requiring at least 48 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.
(k)(1)Maximum household income and asset levels means the applicable household income and household asset levels for participants, including new applicants and renewing recipients, in the Cal Grant Program, as defined and adopted in regulations by the commission for the 200102 academic year, which shall be set pursuant to the following income and asset ceiling amounts:
CAL GRANT PROGRAM INCOME CEILINGS |
Cal Grant A, | Cal Grant B | |
Dependent and Independent students with dependents* | ||
Family Size | ||
Six or more | $74,100 | $40,700 |
Five | $68,700 | $37,700 |
Four | $64,100 | $33,700 |
Three | $59,000 | $30,300 |
Two | $57,600 | $26,900 |
| ||
Single, no dependents | $23,500 | $23,500 |
Married | $26,900 | $26,900 |
*Applies to independent students with dependents other than a
spouse.
CAL GRANT PROGRAM ASSET CEILINGS |
Cal Grant A, | Cal Grant B | |
|
|
|
Independent | $23,600 | $23,600 |
**Applies to independent students with dependents other than a
spouse.
(2)The commission shall annually adjust the maximum household income and asset levels based on the percentage change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIIIB of the California Constitution. The maximum household income and asset levels applicable to a renewing recipient shall be the greater of the adjusted maximum household income and asset levels or the maximum household income and asset levels at the time of the renewing recipients initial Cal Grant award. For a recipient who was initially awarded a Cal Grant for an academic year before the 201112 academic year, the maximum household income and asset levels shall be the greater of the adjusted maximum household income and asset levels or the 201011 academic year maximum household income and asset levels. An applicant or renewal recipient who qualifies to be considered under the simplified needs test established by federal law for student assistance shall be presumed to meet the asset level test under this section. Before disbursing any Cal Grant funds, a qualifying institution shall be obligated, under the terms of its institutional participation agreement with the commission, to resolve any conflicts that may exist in the data the institution possesses relating to that individual.
(l)(1)Qualifying institution means an institution that complies with paragraphs (2) and (3) and is any of the following:
(A)A California private or independent postsecondary educational institution that participates in the Pell Grant Program and in at least two of the following federal student aid programs:
(i)Federal Work-Study Program.
(ii)Federal Stafford Loan Program.
(iii)Federal Supplemental Educational Opportunity Grant Program.
(B)A nonprofit institution headquartered and operating in California that certifies to the commission that 10 percent of the institutions operating budget, as demonstrated in an audited financial statement, is expended for purposes of institutionally funded student financial aid in the form of grants, that demonstrates to the commission that it has the administrative capacity to administer the funds, that is accredited by the Western Association of Schools and Colleges, and that meets any other state-required criteria adopted by regulation by the commission in consultation with the Department of Finance. A regionally accredited institution that was deemed qualified by the commission to participate in the Cal Grant Program for the 200001 academic year shall retain its eligibility as long as it maintains its existing accreditation status.
(C)A California public postsecondary educational institution.
(2)(A)The institution shall provide information on where to access California license examination passage rates for the most recent available year from graduates of its undergraduate programs leading to employment for which passage of a California licensing examination is required, if that data is electronically available through the Internet Web site of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an Internet Web site address labeled as an access point for the data on the passage rates of recent program graduates on the Internet Web site where enrollment information is also located, on an Internet Web site that provides centralized admissions information for postsecondary educational systems with multiple campuses, or on applications for enrollment or other program information distributed to prospective students.
(B)The institution shall be responsible for certifying to the commission compliance with the requirements of subparagraph (A).
(3)(A)The commission shall certify by November 1 of each year the institutions latest official three-year cohort default rate and graduation rate as most recently reported by the United States Department of Education. For purposes of this section, the graduation rate is the percentage of full-time, first-time degree or certificate-seeking undergraduate students who graduate in 150 percent or less of the expected time to complete degree requirements as most recently reported publicly in any format, including preliminary data records, by the United States Department of Education.
(B)For purposes of the 201112 academic year, an otherwise qualifying institution with a three-year cohort default rate reported by the United States Department of Education that is equal to or greater than 24.6 percent shall be ineligible for initial and renewal Cal Grant awards at the institution.
(C)For purposes of the 201213 academic year, and every academic year thereafter, an otherwise qualifying institution with a three-year cohort default rate that is equal to or greater than 15.5 percent, as certified by the commission on October 1, 2011, and every year thereafter, shall be ineligible for initial and renewal Cal Grant awards at the institution.
(D)(i)An otherwise qualifying institution that becomes ineligible under this paragraph for initial and renewal Cal Grant awards shall regain its eligibility for the academic year for which it satisfies the requirements established in subparagraph (B), (C), or (F), as applicable.
(ii)If the United States Department of Education corrects or revises an institutions three-year cohort default rate or graduation rate that originally failed to satisfy the requirements established in subparagraph (B), (C), or (F), as applicable, and the correction or revision results in the institutions three-year cohort default rate or graduation rate satisfying those requirements, that institution shall immediately regain its eligibility for the academic year to which the corrected or revised three-year cohort default rate or graduation rate would have been applied.
(E)An otherwise qualifying institution for which no three-year cohort default rate or graduation rate has been reported by the United States Department of Education shall be provisionally eligible to participate in the Cal Grant Program until a three-year cohort default rate or graduation rate has been reported for the institution by the United States Department of Education.
(F)For purposes of the 201213 academic year, and every academic year thereafter, an otherwise qualifying institution with a graduation rate of 30 percent or less, as certified by the commission pursuant to subparagraph (A), shall be ineligible for initial and renewal Cal Grant awards at the institution, except as provided for in subparagraph (H).
(G)Notwithstanding any other law, the requirements of this paragraph shall not apply to institutions with 40 percent or less of undergraduate students borrowing federal student loans, using information reported to the United States Department of Education for the academic year two years before the academic year in which the commission is certifying the three-year cohort default rate or graduation rate pursuant to subparagraph (A).
(H)Notwithstanding subparagraph (F), an otherwise qualifying institution that maintains a three-year cohort default rate that is less than 15.5 percent and a graduation rate above 20 percent for students taking 150 percent or less of the expected time to complete degree requirements, as certified by the commission pursuant to subparagraph (A), shall be eligible for initial and renewal Cal Grant awards at the institution through the 201617 academic year.
(I)The commission shall do all of the following:
(i)Notify initial Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards under subparagraph (C) or (F) that the institution is ineligible for initial Cal Grant awards for the academic year for which the student received an initial Cal Grant award.
(ii)Notify renewal Cal Grant recipients attending an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) that the students Cal Grant award will be reduced by 20 percent, or eliminated, as appropriate, if the student attends the ineligible institution in an academic year in which the institution is ineligible.
(iii)Provide initial and renewal Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) with a complete list of all California postsecondary educational institutions at which the student would be eligible to receive an unreduced Cal Grant award.
(iv)(I) Establish an appeal process for an otherwise qualifying institution that fails to satisfy the three-year cohort default rate and graduation rate requirements in subparagraphs (C) and (F), respectively.
(II)The commission may grant an appeal for an academic year only if the commission has determined the institution has a cohort size of 20 individuals or less and the cohort is not representative of the overall institutional performance.
(m)Satisfactory academic progress means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. The commission may adopt regulations defining satisfactory academic progress in a manner that is consistent with those federal standards.
(n)Summer term means one or more periods of instruction for credit in a baccalaureate degree program that occurs after the conclusion of the spring semester or quarter and prior to commencement of the fall semester or quarter.
SECTION 1.SEC. 2.Section 69433.5 of the Education Code is amended to read:69433.5.(a)Only a resident of California, as determined by the commission pursuant to Part 41 (commencing with Section 68000), is eligible for an initial Cal Grant award. The recipient shall remain eligible for award renewal only if he or she is a California resident, in attendance, and making satisfactory academic progress at a qualifying institution, as determined by the commission.
(b)A part-time student shall not be discriminated against in the selection of Cal Grant Program award recipients, and an award to a part-time student shall be approximately proportional to the time the student spends in the instructional program, as determined by the commission. A first-time Cal Grant Program award recipient who is a part-time student shall be eligible for a full-time renewal award if he or she becomes a full-time student.
(c)Cal Grant Program awards shall be awarded without regard to race, religion, creed, sex, sexual orientation, gender identity, gender expression, or age.
(d)An applicant shall not receive more than one type of Cal Grant Program award concurrently. An applicant shall not:
(1)Receive one or a combination of Cal Grant Program awards in excess of the amount equivalent to the award level for a total of four years of full-time attendance in an undergraduate program, including the equivalent of two summer sessions or terms of full-time attendance, except as provided in subdivision (g) and Section 69433.6.
(2)Have obtained a baccalaureate degree before receiving a Cal Grant Program award.
(e)A Cal Grant Program award, except as provided in Section 69440, may only be used for educational expenses of a program of study leading directly to an undergraduate degree or certificate, or for expenses of undergraduate coursework in a program of study leading directly to a first professional degree, but for which no baccalaureate degree is awarded.
(f)(1)The commission shall, for students who accelerate college attendance, increase the amount of the award proportional in proportion to the period of additional attendance resulting from attendance in classes that fulfill requirements or electives for graduation during summer terms, sessions, or quarters.
(2)In the aggregate, the total amount a student may receive in a four-year period may not be increased as a result of the student accelerating his or her progress to a degree by attending summer terms, sessions, or quarters.
(g)Notwithstanding paragraph (2) of subdivision (f), a student who is eligible to receive a Cal Grant A award or Cal Grant B award shall be eligible to receive a Summer Cal Grant award, in addition to receiving a Cal Grant A award or Cal Grant B award, for two summer terms of up to nine units of enrollment, or the quarter equivalent, for purposes of pursuing timely completion of a baccalaureate degree at a public postsecondary educational institution.
(g)(h)The commission shall notify Cal Grant award recipients of the availability of funding for the summer term, session, or quarter through prominent notice in financial aid award letters, materials, guides, electronic information, and other means that may include, but not necessarily be limited to, surveys, newspaper articles, or attachments to communications from the commission and any other published documents.
(h)(i)The commission may require, by the adoption of rules and regulations, the production of reports, accounting, documents, or other necessary statements from the award recipient and the college or university of attendance pertaining to the use or application of the award.
(i)(j)A Cal Grant Program award may be utilized only at a qualifying institution.
(j)(k)A recipient who initially qualified for both a Cal Grant A award and a Cal Grant B award, and received a Cal Grant B award, may be awarded a renewal Cal Grant A award if that recipient subsequently became ineligible for a renewal Cal Grant B award and meets the applicable Cal Grant A financial need and income and asset criteria.
SEC. 2.SEC. 3.Section 69433.6 of the Education Code is amended to read:69433.6.(a)(1)Cal Grant A awards and Cal Grant B awards may be renewed for a total of the equivalent of four years of full-time attendance, including the equivalent of two summer sessions or terms of full-time attendance, attendance in an undergraduate program provided that minimum financial need as defined in paragraph (3) of subdivision (b) of Section 69432.9 continues to exist. Commencing with the 200102 academic year, the total number of years of eligibility for grants pursuant to this section shall be based on the students educational level in his or her course of study as designated by the institution of attendance when the recipient initially receives payment for a grant.
(2)Summer Cal Grant awards described in subdivision (g) of Section 69433.5 shall not be subject to or count against the four years of full-time attendance eligibility limitation that applies for purposes of Cal Grant A award and Cal Grant B award renewals, as described in paragraph (1).
(b)(1)Commencing with the 201415 academic year, a recipient who was determined to be ineligible for a renewal award in the 201213 or 201314 academic year because he or she exceeded the maximum household income or asset level established by subdivision (k) of Section 69432.7, or failed to meet the minimum need threshold established by paragraph (3) of subdivision (b) of Section 69432.9, shall be eligible to receive a renewal award if the recipient meets all program eligibility requirements for the program from which he or she was previously disqualified and the recipient has remaining renewal award eligibility. For purposes of determining a students remaining renewal award eligibility, an academic year during which a student was ineligible shall reduce his or her renewal award eligibility by one full-time equivalent year.
(2)Commencing with the 201516 academic year, a recipient who is determined to be ineligible for a renewal award because, during the immediately preceding academic year, he or she exceeded the maximum household income or asset level established by subdivision (k) of Section 69432.7, or failed to meet the minimum need threshold established by paragraph (3) of subdivision (b) of Section 69432.9, shall be eligible to receive a renewal award if the recipient meets all program eligibility requirements for the program from which he or she was previously disqualified and the recipient has remaining renewal award eligibility. For purposes of determining a students remaining renewal award eligibility, an academic year during which a student was ineligible shall reduce his or her renewal award eligibility by one full-time equivalent year.
(c)For a student enrolled in an institutionally prescribed five-year undergraduate program, Cal Grant A awards and Cal Grant B awards may be renewed for a total of five years of full-time attendance, provided that minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.
(d)(1)A Cal Grant Program award recipient who has completed a baccalaureate degree, and who has been admitted to and is enrolled in a program of professional teacher preparation at an institution approved by the California Commission on Teacher Credentialing is eligible for, but not entitled to, renewal of a Cal Grant Program award for an additional year of full-time attendance, if minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.
(2)Payment for an additional year is limited to only those courses required for an initial teaching authorization. An award made under this subdivision may not be used for other courses.
(3)A students Cal Grant Program renewal eligibility shall not have lapsed more than 15 months before the payment of an award for purposes of this subdivision.
(a)Only a resident of California, as determined by the commission pursuant to Part 41 (commencing with Section 68000), is eligible for an initial Cal Grant award. The recipient shall remain eligible for award renewal only if he or she is a California resident, in attendance, and making satisfactory academic progress at a qualifying institution, as determined by the commission.
(b)A part-time student shall not be discriminated against in the selection of Cal Grant Program award recipients, and an award to a part-time student shall be approximately proportional to the time the student spends in the instructional program, as determined by the commission. A first-time Cal Grant Program award recipient who is a part-time student shall be eligible for a full-time renewal award if he or she becomes a full-time student.
(c)Cal Grant Program awards shall be awarded without regard to race, religion, creed, sex, sexual orientation, gender identity, gender expression, or age.
(d)An applicant shall not receive more than one type of Cal Grant Program award concurrently. An applicant shall not:
(1)Receive one or a combination of Cal Grant Program awards in excess of the amount equivalent to the award level for a total of four years of full-time attendance in an undergraduate program, including the equivalent of two summer sessions or terms of full-time attendance, except as provided in Section 69433.6.
(2)Have obtained a baccalaureate degree before receiving a Cal Grant Program award.
(e)A Cal Grant Program award, except as provided in Section 69440, may only be used for educational expenses of a program of study leading directly to an undergraduate degree or certificate, or for expenses of undergraduate coursework in a program of study leading directly to a first professional degree, but for which no baccalaureate degree is awarded.
(f)The commission shall, for students who accelerate college attendance, increase the amount of award proportional to the period of additional attendance resulting from attendance in classes that fulfill requirements or electives for graduation during summer terms, sessions, or quarters. In the aggregate, the total amount a student may receive in a four-year period may not be increased as a result of accelerating his or her progress to a degree by attending summer terms, sessions, or quarters.
(g)The commission shall notify Cal Grant award recipients of the availability of funding for the summer term, session, or quarter through prominent notice in financial aid award letters, materials, guides, electronic information, and other means that may include, but not necessarily be limited to, surveys, newspaper articles, or attachments to communications from the commission and any other published documents.
(h)The commission may require, by the adoption of rules and regulations, the production of reports, accounting, documents, or other necessary statements from the award recipient and the college or university of attendance pertaining to the use or application of the award.
(i)A Cal Grant Program award may be utilized only at a qualifying institution.
(j)A recipient who initially qualified for both a Cal Grant A award and a Cal Grant B award, and received a Cal Grant B award, may be awarded a renewal Cal Grant A award if that recipient subsequently became ineligible for a renewal Cal Grant B award and meets the applicable Cal Grant A financial need and income and asset criteria.
SEC. 2.Section 69433.6 of the Education Code is amended to read:69433.6.(a)Cal Grant A awards and Cal Grant B awards may be renewed for a total of the equivalent of four years of full-time attendance attendance, including the equivalent of two summer sessions or terms of full-time attendance, in an undergraduate program provided that minimum financial need as defined in paragraph (3) of subdivision (b) of Section 69432.9 continues to exist. Commencing with the 200102 academic year, the total number of years of eligibility for grants pursuant to this section shall be based on the students educational level in his or her course of study as designated by the institution of attendance when the recipient initially receives payment for a grant.
(b)(1)Commencing with the 201415 academic year, a recipient who was determined to be ineligible for a renewal award in the 201213 or 201314 academic year because he or she exceeded the maximum household income or asset level established by subdivision (k) of Section 69432.7, or failed to meet the minimum need threshold established by paragraph (3) of subdivision (b) of Section 69432.9, shall be eligible to receive a renewal award if the recipient meets all program eligibility requirements for the program from which he or she was previously disqualified and the recipient has remaining renewal award eligibility. For purposes of determining a students remaining renewal award eligibility, an academic year during which a student was ineligible shall reduce his or her renewal award eligibility by one full-time equivalent year.
(2)Commencing with the 201516 academic year, a recipient who is determined to be ineligible for a renewal award because, during the immediately preceding academic year, he or she exceeded the maximum household income or asset level established by subdivision (k) of Section 69432.7, or failed to meet the minimum need threshold established by paragraph (3) of subdivision (b) of Section 69432.9, shall be eligible to receive a renewal award if the recipient meets all program eligibility requirements for the program from which he or she was previously disqualified and the recipient has remaining renewal award eligibility. For purposes of determining a students remaining renewal award eligibility, an academic year during which a student was ineligible shall reduce his or her renewal award eligibility by one full-time equivalent year.
(c)For a student enrolled in an institutionally prescribed five-year undergraduate program, Cal Grant A awards and Cal Grant B awards may be renewed for a total of five years of full-time attendance, provided that minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.
(d)(1)A Cal Grant Program award recipient who has completed a baccalaureate degree, and who has been admitted to and is enrolled in a program of professional teacher preparation at an institution approved by the California Commission on Teacher Credentialing is eligible for, but not entitled to, renewal of a Cal Grant Program award for an additional year of full-time attendance, if minimum financial need, as defined in paragraph (3) of subdivision (b) of Section 69432.9, continues to exist.
(2)Payment for an additional year is limited to only those courses required for an initial teaching authorization. An award made under this subdivision may not be used for other courses.
(3)A students Cal Grant Program renewal eligibility shall not have lapsed more than 15 months before the payment of an award for purposes of this subdivision.
SECTION 1.It is the intent of the Legislature to enact legislation to provide financial aid for students attending summer terms in public postsecondary educational institutions.It is the intent of the Legislature to enact legislation to provide financial aid for students attending summer terms in public postsecondary educational institutions.
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Date
|
Status
|
|---|---|
| Aug 16, 2018 | In committee: Held under submission. |
| Jul 2, 2018 | In committee: Referred to APPR. suspense file. |
| Jun 20, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 20). Re-referred to Com. on APPR. |
| Jun 13, 2018 | Referred to Com. on ED. |
| May 31, 2018 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 30, 2018 | Read third time. Passed. Ordered to the Senate. |
| May 29, 2018 | Read second time. Ordered to third reading. |
| May 25, 2018 | From committee: Amend, and do pass as amended. (Ayes 12. Noes 0.) (May 25). |
| May 9, 2018 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 25, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 24). Re-referred to Com. on APPR. |
| Apr 16, 2018 | Re-referred to Com. on HIGHER ED. |
| Apr 12, 2018 | From committee chair, with author's amendments: Amend, and re-refer to Com. on HIGHER ED. Read second time and amended. |
| Apr 2, 2018 | Re-referred to Com. on HIGHER ED. |
| Mar 23, 2018 | From committee chair, with author's amendments: Amend, and re-refer to Com. on HIGHER ED. Read second time and amended. |
| Mar 22, 2018 | Referred to Com. on HIGHER ED. |
| Feb 17, 2018 | From printer. May be heard in committee March 19. |
| Feb 16, 2018 | Read first time. To print. |
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Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 2, 2018 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 20, 2018 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Education |
Passed |
|
| May 30, 2018 | AB 3153 LEVINE Assembly Third Reading | Assembly Floor |
Passed |
|
| May 25, 2018 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 24, 2018 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Higher Education |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Association of Independent California Colleges and Universities | * For If Amend | Apr 24, 2018 |
| California State University | ** Support | Jun 19, 2018 |
| California State University Chancellor's Office | * Support | Apr 24, 2018 |
| Coalition for a Better UC | * Support | Apr 24, 2018 |
| Coalition for a Better UC | * Support | Apr 24, 2018 |
| The Campaign for College Opportunity | ** Support | Jun 19, 2018 |
| UCSA | * Support | Apr 24, 2018 |
| UCSB AS Lobby Corp | * Support | Apr 24, 2018 |
| University of California | ** Support | Jun 19, 2018 |
| University Of California Student Association | ** Support | Jun 19, 2018 |
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2017 - 2018 Regular Session
AB 3153 (Levine) - Student financial aid: Cal Grants: summer term students
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
This bill expands the total period of eligibility for Cal Grant A or Cal Grant B awards by establishing eligibility for an additional Summer Cal Grant award for purposes of timely completion of a baccalaureate degree program at a public postsecondary institution.
Fiscal Impact:
- The California Student Aid Commission (CSAC) estimates General Fund costs in the high tens of millions of dollars to potentially over one hundred million dollars annually to provide the summer Cal Grant awards to students. A precise amount would depend on the number of Cal Grant recipients who elect to enroll in the summer term and the number of units these students take.
- The CSAC also indicates $574,000 in one-time costs to implement the new program, including programming changes to its existing grant delivery system, rule development, outreach, and training, and about $187,000 in ongoing costs to administer the program (General Fund).
Background:
Existing law authorizes the Cal Grant program, administered by the CSAC, to provide grants to financially needy students to attend a college or university. The Cal Grant program provides both entitlement and competitive awards through the Cal Grant A, Cal Grant B, and Cal Grant C programs. Eligibility is based on financial need, GPA, California residency and other criteria.
Existing law establishes the Cal Grant A and B awards as an entitlement for California students meeting certain eligibility criteria, meaning the state automatically funds those students that qualify. An application must be submitted when the student is a high school senior or has graduated from high school within the last year. Eligible applicants who miss the application deadline or enroll well after they have graduated from high school may apply for a Competitive Cal Grant award.
However, the program prohibits an applicant from receiving one or a combination of program awards in excess of the amount equivalent to the award level for a total of a 4-year period of full-time attendance in an undergraduate program. Existing law authorizes an additional year of eligibility for students enrolled in an institutionally prescribed 5-year undergraduate program or students enrolled in professional teacher preparation program, as specified.
Cal Grant A provides full-tuition coverage for students enrolled at California State University (CSU) and University of California (UC) and partial tuition at private colleges and universities. The Cal Grant B award comes with two payment components—access and tuition fees, in which the access portion covers non-tuition costs in the amount of $1,672. The Cal Grant B program provides full-tuition coverage except not in the first year of college for students enrolled at CSU and UC and partial tuition coverage for students enrolled at private colleges and universities.
California Community College (CCC) students primarily receive Cal Grant B access awards to cover non-tuition costs. These students also receive CCC fee waivers as the Cal Grant program does not cover community college fees. According to a related report by California College Pathways the majority of foster youth in postsecondary school in California attend community colleges and 80 percent of those students receive a California Community College fee waiver.
Existing law also establishes the Cal Grant Competitive Award program which provides 25,750 Cal Grant A and B awards to applicants who meet financial, academic and general program eligibility requirements. Half of these awards are reserved for students enrolled at a community college and who met the September 2 application deadline. According to the Commission’s website, eligibility for this program is geared toward nontraditional students, such as those who did not go to college right after high school, and takes into account not only GPA, but also time out of high school, family income, parents’ education levels, high school performance standards and other factors, such as whether the student comes from a single-parent household or was a foster youth. Currently, there are only 25,750 Competitive Cal Grant awards that are statutorily authorized each year. According to the CSAC, this program is oversubscribed with applicants that have failed to meet the entitlement programs. In any given year, there may be 300,000 to 350,000 applicants that compete for the 25,750 awards.
Proposed Law:
This bill allows a student who is eligible to receive a Cal Grant A or Cal Grant B award to receive a Summer Cal Grant award (in addition to receiving a Cal Grant A award or Cal Grant B award) for two summer terms of up to nine units of enrollment, or the quarter equivalent, per term for purposes of pursuing timely completion of a baccalaureate degree at a public postsecondary educational institution. This bill prohibits the summer Cal Grant award from being subject to or count against the four years of full-time attendance eligibility limitation that applies for purposes of Cal Grant A award and Cal Grant B awards renewals, as described.
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SENATE COMMITTEE ON EDUCATION
Senator Benjamin Allen, Chair
2017 - 2018 Regular
Bill No: Hearing Date: June 20, 2018
Author: | Levine | ||
Version: |
| ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject:
SUMMARY
This bill expands the total period of eligibility for Cal Grant A or Cal Grant B awards by establishing eligibility for an additional Summer Cal Grant award for purposes of timely completion of a baccalaureate degree program at a public postsecondary institution.
BACKGROUND
- Cal Grant A Awards. Students meeting specified income and asset thresholds and other eligibility requirements, and having at least a 3.0 GPA receive tuition and fee assistance. (Education Code § 69434)
- Cal Grant B Awards. Students meeting income thresholds (lower than for Cal Grant A), asset thresholds and other eligibility requirements, and having least a 2.0 GPA receive a living allowance and tuition and fee assistance. Awards for most first-year students are limited to an allowance for non-tuition costs (access award), such as books and living expenses (currently $1,672). In the second and subsequent years, the award also provides tuition and fee support. (EC § 69435)
- Prohibits receipt of a Cal Grant award in excess of the amount equivalent to the award level for four years of full-time attendance in an undergraduate program. (EC § 69433.5(d)(1))
- Stipulates that CSAC shall increase the Cal Grant award for students who accelerate their college attendance by enrolling during the summer, but that the total award amount a student may receive over a four-year period may not be increased as a result of such acceleration. (EC § 69433.5(f))
- The federal Pell Grant provides aid to students who demonstrate financial need, and can be used for tuition and fees, books and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for 2017-18 is $5,920. (20 United States Code § 1070)
ANALYSIS
This bill:
- Defines,“summer term,” to mean one or more periods of instruction for credit in a baccalaureate degree program that occurs after the conclusion of the spring semester a quarter and prior to commencement of the fall semester or quarter.
- Notwithstands the prohibition of receipt of an increased award amount beyond the allotted four-year period for attending summer terms, sessions or quarters, as specified.
- Makes a student who is eligible to receive a Cal Grant A award or Cal Grant B award who has transferred to a 4-year award eligible to receive a Summer Cal grant award, in addition to receiving a Cal Grant A award or Cal Grant B award, for two summer terms of up to nine units of enrollment, or the quarter equivalent, per term for purposes of pursuing timely completion of a baccalaureate degree at a public postsecondary educational institution.
- Makes a student who is eligible to receive a Cal Grant A award or Cal Grant B award who has transferred to a 4-year qualifying institution from a community eligible to receive a Summer Cal Grant award, in addition to receiving a Cal Grant A award or Cal Grant B award, for one summer term of up to nine units of enrollment, or the quarter equivalent.
- Prohibits the summer Cal Grant award from being subject to or count against the four years of full-time attendance eligibility limitation that applies for purposes of Cal Grant A award and Cal Grant B awards renewals, as described.
STAFF COMMENTS
- Need for the bill. According to the author, “expanding Cal Grant eligibility to summer sessions will allow students to afford summer courses reduce their financial burden, and graduate in a faster time frame, without incurring additional debt.
California is facing a college graduate deficit. According to the Public Policy Institution of California, if current trends persist, our state will incur a shortage of 1.1 million college graduates by 2030 and will be unable to meet its workforce and economic demands due in part to college students not graduating within a 4-year timeframe.
A large impediment to increase graduation rates is the lack of financial aid available for students during summer sessions. Currently, undergraduate students cannot be awarded a Cal Grant A and B award for more than four academic years of full-time attendance. This means that the aid-eligible students receive in a four year period may not be increased if a student accelerates their graduation by attending summer sessions.
Additionally, the cost per course unit is significantly higher during the summer sessions, which causes students to forgo taking the classes they need to graduate because they cannot afford the higher tuition and fees.
The federal government recently extended Pell Grant eligibility to include summer sessions, due to the need of year-round aid for college students. Having access to the Pell Grant during the summer allows students across the nation to receive up to 150 percent of the regular grant award over the academic year allowing them to afford to enroll in summer classes and achieve their degrees in a faster time frame.”
- Duration of Cal Grant awards. The Cal Grant program currently offers awards to cover tuition costs for the equivalent of a 4-year academic period. The amount and duration of the award are based on the student’s attendance status (full-time/part-time) and term (semester or quarter). This provides some flexibility to take more units within the parameters of their attendance status without losing additional eligibility. However, this also since amounts are based on the regular academic year grant, a summer school payment will reduce a student’s total program eligibility for Cal Grant benefits.
The proposed aid program, provides an additional award for up to two summer terms without counting against program eligibility for the “regular,” academic year.
- Efforts to improve timely completion. In response to concerns that students are taking longer to complete their undergraduate degrees or not at all, public postsecondary institutions and the state have focused on improving and supporting timely degree completion. Recent budget actions have charged each segment with setting goals and implementing strategies for improving transfer, 4-year and 6-year graduation rates. According to the University of California, students who attend summer courses at least once in their undergraduate career are more likely to graduate in four years. Some of these strategies include promoting full-time attendance (12 units or more), creating clear curricular/transfer pathways, establishing targeted support services and reducing the number of unnecessary classes that lead students off track. In addition to those programmatic changes, the legislature through the budget has established two new grant programs at the California Community Colleges to accelerate degree completion for a student enrolled in 12 units or more (full-time status). Full-time status during the regular academic year or summer term is not required under this bill’s provisions.
- What is covered under Cal Grant A and B? Cal Grant A provides full-tuition coverage for students enrolled at California State University (CSU) and University of California (UC) and partial tuition at private colleges and universities. The Cal Grant B award comes with two payment components—access and tuition fees. The access portion covers non-tuition costs in the amount of $1,672. This program provides full-tuition coverage except not in the first year of college for students enrolled at CSU and UC and partial tuition coverage for students enrolled at private colleges and universities. It appears that the proposed summer grant covers tuition for the summer term but it’s not clear whether additional aid granted to Cal Grant B students is also provided as a component of the summer grant. The author may wish to clarify which costs are covered by the summer grant award.
- Pell Grant provides some assistance. Last year the federal government reinstated a Pell Grant policy, such that recipients who enroll full-time in the fall and spring semesters may now utilize part of their overall Pell Grant eligibility – i.e. obtain additional grant monies – for the summer, if they enroll in at least 6 units. Thus, while a student is still limited to receiving a Pell Grant for the equivalent of six years of full-time attendance, they can now receive a grant to either accelerate their degree completion or get back on track for timely completion by attending in the summer. In some cases participants in the proposed grant program could additionally receive a Pell grant award.
SUPPORT
University of California
University of California Student Association
California State University
The Campaign for College Opportunity
OPPOSITION
None received
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ASSEMBLY THIRD READING
ATR Bill Id:AB 3153
Author:(Levine)
As Amended Ver:May 25, 2018
Majority vote
Committee | Votes | Ayes | Noes |
Higher Education | 13-0 | Medina, Baker, Arambula, Bloom, Chávez, Irwin, Kiley, Levine, Low, Patterson, Quirk-Silva, Santiago, Weber | |
Appropriations | 12-0 | Gonzalez Fletcher, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Friedman, Eduardo Garcia, Nazarian, Quirk, Reyes |
|
SUMMARY: Expands the total period of eligibility for a student to receive Cal Grant A or Cal Grant B awards – currently the equivalent of four years of full-time enrollment – by allowing the student to receive an additional Summer Cal Grant award for two summer terms of up to nine units, if the student enrolled in a four-year qualifying institution as a freshmen; expands the total period of eligibility for a student who has transferred to a four-year qualifying institution from a community college to receive Cal Grant A or Cal Grant B by allowing the student to receive an additional Summer Cal Grant award for one summer term of up to nine units for purposes of timely completion of a baccalaureate degree program at a public postsecondary institution; and, makes conforming changes.
EXISTING LAW:
- Establishes the California Student Aid Commission (CSAC) for the purpose of administering specified student financial aid programs (Education Code (EC) Section 69510, et seq.).
- Establishes the Cal Grant A and B Entitlement Programs, the California Community College Transfer Cal Grant Program, the Competitive Cal Grant A and B Programs, the Cal Grant C Program, and the Cal Grant T Program, each with specified eligibility requirements related to the applicant's age, academic achievement, family income, maximum award amount limits, length of award eligibility, and other factors (EC Section 69430, et seq.).
- Cal Grant A Awards. Students meeting specified income and asset thresholds and other eligibility requirements, and having at least a 3.0 GPA receive tuition and fee assistance (EC Section 69434).
- Cal Grant B Awards. Students meeting income thresholds (lower than for Cal Grant A), asset thresholds and other eligibility requirements, and having least a 2.0 GPA receive a living allowance and tuition and fee assistance. Awards for most first-year students are limited to an allowance for non-tuition costs (access award), such as books and living expenses (currently $1,672). In the second and subsequent years, the award also provides tuition and fee support (EC Section 69435).
- Prohibits receipt of a Cal Grant award in excess of the amount equivalent to the award level for four years of full-time attendance in an undergraduate program (EC Section 69433.5(d)(1)).
- Stipulates that CSAC shall increase the Cal Grant award for students who accelerate their college attendance by enrolling during the summer, but that the total award amount a student may receive over a four-year period may not be increased as a result of such acceleration (EC Section 69433.5(f)).
- The federal Pell Grant provides aid to students who demonstrate financial need, and can be used for tuition and fees, books and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for 2017-18 is $5,920 (20 United States Code Section 1070).
FISCAL EFFECT: According to the Assembly Appropriations Committee:
- Potential annual General Fund (GF) costs in the tens of millions of dollars annually to provide summer Cal Grants awarded to students. Costs would depend on the number of Cal Grant recipients who elect to enroll in the summer term and the number of units these students take. (Assuming 5% of Cal Grant eligible students begin taking six credits in the summer, costs would be about $50 million annually. There are almost 130,000 Cal Grant recipients at CSU and 75,000 at UC. Currently, Cal Grants provide full tuition, $12,630 at UC and $5,742 at CSU, and some funding for living expenses for certain students of up to $1,672.)
- $500,000 one-time GF costs to CSAC to implement the summer Cal Grant program, including programming changes to its existing grant delivery system, rule development, outreach, and training.
- Ongoing GF costs of about $100,000 to CSAC for ongoing administration of the program.
COMMENTS: Purpose. This bill expands the Cal Grant program to provide additional financial aid during two summer terms for students attending the University of California (UC) and the California State University (CSU). (Students enrolled in the pilot baccalaureate degree programs at the community colleges would also be eligible.) The author intends this as a way for students to take summer courses so they might graduate on time and do so without incurring additional debt.
Currently, in order to receive a full Cal Grant award, students must take at least 12 semester units, or the equivalent quarter units. (For students taking less than 12 units, their Cal Grant award for that semester is proportionately reduced.) If, however, a student consistently takes 12 units per semester for four years – earning 96 units total – they will be 24 units short of the 120 units that are generally necessary for graduation, yet they will have exhausted all of their Cal Grant eligibility, which is limited to the equivalent of four years of full-time enrollment.
While many Cal Grant recipients who are full-time students do take more than the 12-unit minimum, over the course of four years, they still might not be taking sufficient units to graduate "on time". Taking one or two courses during one or two summer terms would be a way for such students to stay on track for graduation. The lack of additional Cal Grant support for, and the high per-unit cost of, summer enrollment at both UC and CSU are barriers to these students, however.
This bill allows Cal Grant recipients who have transferred from a community college to a qualifying 4-year institution to obtain an additional award – the Summer Cal Grant – which would cover the tuition cost for enrolling in up to 9 semester units (or the quarter equivalent) for one summer term and for the explicit purpose of pursuing timely completion of their degree requirement. It is expected that the availability of this additional aid will allow more Cal Grant students to attend in summer and obtain the credits they need for on-time graduation.
Background. At both UC and CSU, Cal Grant recipients have lower four-year graduation rates than non-recipients. At CSU, 27.1% of non-Cal Grant recipients graduate in four years, while only 16.7% of Cal Grant recipients do so. (The six year graduation rates for both groups are much closer – 60.1% for non-Cal Grant and 57.6% for Cal Grant.) UC does not have separate graduation data for Cal Grant recipients, but does so for Pell Grant recipients. (About 90% of Pell Grant recipients also receive a Cal Grant.) The four-year graduation rates at UC are 71% for non-Pell recipients and 57% for Pell recipients, while the six-year rates are 87% and 82%, respectively.
Information from UC indicates that significant proportions of students who graduate on time have enrolled in at least some summer classes. For example, of the freshmen who entered UC in 2010 and graduated within four years, about 75% attended at least one summer term and over 40% attended for two or more summer terms. UC undergraduates enrolling in summer 2016 took an average of 5.8 semester units. (Berkeley and Merced are on the semester system and the other campuses are on the quarter system.)
Pell Grant Can Provide Some Assistance. Unlike the four-year eligibility of the Cal Grant, the federal Pell Grant is available to eligible students for up to the equivalent of six years of full-time enrollment. In recent years, however, a grant recipient could only use one full year of their eligibility within a single academic year. In other words, if the recipient enrolled full-time (by taking 12 or more units) in both the fall and spring semesters, they would use up their entire Pell Grant award for that year and thus would not receive any additional grant monies if they enrolled during the summer sessions.
Last year the federal government reinstated a Pell Grant policy such that recipients who enroll full-time in the fall and spring semesters may now utilize part of their overall Pell Grant eligibility – i.e. obtain additional grant monies – for the summer, if they enroll in at least 6 units. Thus, while a student is still limited to receiving a Pell Grant for the equivalent of six years of full time attendance, they can now receive a grant to either accelerate their degree completion or get back on track for timely completion by attending in the summer.
Then Why is This Bill Needed? Given the above, why would students need an additional Cal Grant award for summer on top of their ability to use their Pell Grant award during the summer? First, while most UC and CSU students who receive a Cal Grant also receive a Pell Grant, not all do, nor do those who receive both grants get the maximum Pell Grant. Second, students taking less than 6 units in the summer would not be able to use their Pell Grant. Third, some students may need to apply their Pell Grant award toward covering the non-tuition costs of summer attendance. Finally, the funding of Pell Grants is inconsistent. The year-round Pell Grant eligibility was discontinued in 2012 – as a budget-cutting alternative to reducing the maximum grant amount - and was just reinstated last year. Given the massive federal budget deficit projections, continuation of the year-round policy is likely somewhat tenuous.
Related Legislation. AB 2306 (Santiago) of the current legislative session, which was held on the Assembly Appropriations Suspense File, provided that a California Community College (CCC) applicant, or a former community college student who transfers to a four-year institution after having received a Cal Grant award while enrolled at a community college shall be eligible to receive the Cal Grant award in the amount equivalent to six years of full-time attendance, instead of only four years of full-time attendance, in an undergraduate program.
AB 2248 (McCarty) of the current legislative session, which is pending referral in the Senate, requires CSAC and postsecondary institutions participating in the Cal Grant Program to notify students regarding the four-year limit on Cal Grants and the need to take 30 semester units per academic year in order to graduate in four years.
Analysis Prepared by: Jeanice Warden / HIGHER ED. / (916) 319-3960 FN: 0003458
Date of Hearing: May 9, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 3153
Author:(Levine) – As Amended Ver:April 12, 2018
Policy Committee: | Higher Education | Vote: | 13 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY: This bill expands the total period of eligibility for a student to receive Cal Grant A or Cal Grant B awards. The current period of eligibility is the equivalent of four years of full-time enrollment. This bill allows the student to receive an additional summer Cal Grant award for two summer terms of up to nine units each summer for purposes of timely completion of a baccalaureate degree program at a public postsecondary institution.
FISCAL EFFECT:
- Potential annual GF costs in the tens of millions of dollars annually to provide summer Cal Grants awarded to students. Costs would depend on the number of Cal Grant recipients who elect to enroll in the summer term and the number of units these students take. (Assuming 5% of Cal Grant eligible students begin taking six credits in the summer, costs would be about $50 million annually. There are almost 130,000 Cal Grant recipients at CSU and 75,000 at UC. Current Cal Grants provide full tuition, $12,630 at UC and $5,742 at CSU, and some funding for living expenses for certain students of up to $1,672.)
- $500,000 one-time GF costs to the California Student Aid Commission (CSAC) to implement the summer Cal Grant program, including programming changes to its existing grant delivery system, rule development, outreach, and training.
- Ongoing GF costs of about $100,000 to CSAC for ongoing administration of the program.
COMMENTS:
- Purpose. The author intends this bill to encourage students to take summer courses so they graduate from college more quickly.
- Background. UC’s four-year graduation rate is about 60% and CSU’s is about 20%. Students who receive Cal Grants or Pell Grants have on average lower four-year graduations rates. Public institutions have taken various steps to decrease students’ time to degree. For example, the CSU has adopted the Associate Degree for Transfer program, which is intended to speed and ease transfer and graduation for a student transferring to CSU from a community college.
- Cal Grants. The CSAC administers the Cal Grant program, the state’s largest need-based financial aid program. Cal Grants awards over $2 billion General Fund annually to undergraduate students whom meet certain income and eligibility criteria at CCC, California State University, University of California, and some private institutions. Students may receive Cal Grants for up to four years of full-time college attendance if they continue to meet income and other requirements. Cal Grants awards may provide aid for both tuition and nontuition expenses.
Currently, in order to receive a full Cal Grant award, students must take at least 12 semester units, or the equivalent quarter units. (For students taking less than 12 units, their Cal Grant award for that semester is proportionately reduced.) If, however, a student consistently takes 12 units per semester for four years – earning 96 units total – they will be 24 units short of the 120 units that are generally necessary for graduation, yet they will have exhausted all of their Cal Grant eligibility, which is limited to the equivalent of four years of full-time enrollment.
- Staff Comments. The author could consider whether an additional award for up to 18 units (15% of the units generally required for graduation) is necessary to accomplish the on-time completion goals of this bill. In addition, the bill currently provides the same benefit to transfer students as entering freshmen. Transfer students theoretically enter UC or CSU having already earned one-half of the units needed for graduation and should therefore need only 60 more units to obtain their baccalaureate degrees. Therefore, limiting these students to a Summer Cal Grant for one semester of up to 9 units would provide parity with entering freshman, who could receive the Summer Cal Grant for up to 18 of their 120 units over two summers. The bill could also provide similar limitations, over the initial years following enactment, to existing UC and CSU upper division students.
- Related Legislation. AB 2306 (Santiago), of this session, provides that a California Community College applicant, or a former community college student who transfers to a four-year institution after having received a Cal Grant award while enrolled at a community college, shall be eligible to receive the Cal Grant award in the amount equivalent to six years of full-time attendance, instead of only four years of full-time attendance, in an undergraduate program. The bill is currently on this committee’s suspense file.
Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081
Date of Hearing: April 24, 2018
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
ABPCA Bill Id:AB 3153 (
Author:Levine) – As Amended Ver:April 12, 2018
SUBJECT: Student financial aid: Cal Grants: summer term students
SUMMARY: Expands the total period of eligibility for a student to receive Cal Grant A or Cal Grant B awards – currently the equivalent of four years of full-time enrollment – by allowing the student to receive an additional Summer Cal Grant award for two summer terms of up to 9 units for purposes of timely completion of a baccalaureate degree program at a public postsecondary institution. The bill also makes conforming changes.
EXISTING LAW:
- Establishes the California Student Aid Commission (CSAC) for the purpose of administering specified student financial aid programs. (Education Code (EC) Section 69510, et seq.)
- Establishes the Cal Grant A and B Entitlement Programs, the California Community College Transfer Cal Grant Program, the Competitive Cal Grant A and B Programs, the Cal Grant C Program, and the Cal Grant T Program, each with specified eligibility requirements related to the applicant's age, academic achievement, family income, maximum award amount limits, length of award eligibility, and other factors. (EC Sect. 69430, et seq.)
- Cal Grant A Awards. Students meeting specified income and asset thresholds and other eligibility requirements, and having at least a 3.0 GPA receive tuition and fee assistance. (EC Sect. 69434.)
- Cal Grant B Awards. Students meeting income thresholds (lower than for Cal Grant A), asset thresholds and other eligibility requirements, and having least a 2.0 GPA receive a living allowance and tuition and fee assistance. Awards for most first-year students are limited to an allowance for non-tuition costs (access award), such as books and living expenses (currently $1,672). In the second and subsequent years, the award also provides tuition and fee support. (EC Sect. 69435.)
- Prohibits receipt of a Cal Grant award in excess of the amount equivalent to the award level for four years of full-time attendance in an undergraduate program. (EC Sect. 69433.5 (d) (1))
- Stipulates that CSAC shall increase the Cal Grant award for students who accelerate their college attendance by enrolling during the summer, but that the total award amount a student may receive over a four-year period may not be increased as a result of such acceleration. (EC Sect. 69433.5 (f))
- The federal Pell Grant provides aid to students who demonstrate financial need, and can be used for tuition and fees, books and supplies, transportation, and living expenses for the equivalent of up to six years of full-time enrollment. The maximum Pell Grant for 2017-18 is $5,920. (20 U.S. Code Sect. 1070.)
FISCAL EFFECT: Unknown.
COMMENTS: Purpose. AB 3153 expands the Cal Grant program to provide additional financial aid during two summer terms for students attending the University of California (UC) and the California State University (CSU). (Students enrolled in the pilot baccalaureate degree programs at the community colleges would also be eligible.) The author intends this as a way for students to take summer courses so they might graduate on time and do so without incurring additional debt.
Currently, in order to receive a full Cal Grant award, students must take at least 12 semester units, or the equivalent quarter units. (For students taking less than 12 units, their Cal Grant award for that semester is proportionately reduced.) If, however, a student consistently takes 12 units per semester for four years – earning 96 units total – they will be 24 units short of the 120 units that are generally necessary for graduation, yet they will have exhausted all of their Cal Grant eligibility, which is limited to the equivalent of four years of full-time enrollment.
While many Cal Grant recipients who are full-time students do take more than the 12-unit minimum, over the course of four years, they still might not be taking sufficient units to graduate "on time". Taking one or two courses during one or two summer terms would be a way for such students to stay on track for graduation. The lack of additional Cal Grant support for, and the high per-unit cost of, summer enrollment at both UC and CSU are barriers to these students, however.
This bill allows Cal Grant recipients to obtain an additional award – the Summer Cal Grant – which would cover the tuition cost for enrolling in up to 9 semester units (or the quarter equivalent) for up to two summer terms and for the explicit purpose of pursuing timely completion of their degree requirement. It is expected that the availability of this additional aid will allow more Cal Grant students to attend in summer and obtain the credits they need for on-time graduation.
Background. At both UC and CSU, Cal Grant recipients have lower four-year graduation rates than non-recipients. At CSU, 27.1% of non-Cal Grant recipients graduate in four years, while only 16.7% of Cal Grant recipients do so. (The six year graduation rates for both groups are much closer – 60.1% for non-Cal Grant and 57.6% for Cal Grant.) UC does not have separate graduation data for Cal Grant recipients, but does so for Pell Grant recipients. (About 90% of Pell Grant recipients also receive a Cal Grant.) The four-year graduation rates at UC are 71% for non-Pell recipients and 57% for Pell recipients, while the six-year rates are 87% and 82% , respectively.
Information from UC indicates that significant proportions of students who graduate on time have enrolled in at least some summer classes. For example, of the freshmen who entered UC in 2010 and graduated within four years, about 75% attended at least one summer term and over 40% attended for two or more summer terms. UC undergraduates enrolling in summer 2016 took an average of 5.8 semester units. (Berkeley and Merced are on the semester system and the other campuses are on the quarter system.)
Pell Grant Can Provide Some Assistance. Unlike the four-year eligibility of the Cal Grant, the federal Pell Grant is available to eligible students for up to the equivalent of six years of full-time enrollment. In recent years, however, a grant recipient could only use one full year of their eligibility within a single academic year. In other words, if the recipient enrolled full-time (by taking 12 or more units) in both the fall and spring semesters, they would use up their entire Pell Grant award for that year and thus would not receive any additional grant monies if they enrolled during the summer sessions.
Last year the federal government reinstated a Pell Grant policy such that recipients who enroll full-time in the fall and spring semesters may now utilize part of their overall Pell Grant eligibility – i.e. obtain additional grant monies – for the summer, if they enroll in at least 6 units. Thus, while a student is still limited to receiving a Pell Grant for the equivalent of six years of full time attendance, they can now receive a grant to either accelerate their degree completion or get back on track for timely completion by attending in the summer.
Then Why is This Bill Needed? Given the above, why would students need an additional Cal Grant award for summer on top of their ability to use their Pell Grant award during the summer? First, while most UC and CSU students who receive a Cal Grant also receive a Pell Grant, not all do, nor do those who receive both grants get the maximum Pell Grant. Second, students taking less than 6 units in the summer would not be able to use their Pell Grant. Third, some students may need to apply their Pell Grant award toward covering the non-tuition costs of summer attendance. Finally, the funding of Pell Grants is inconsistent. The year-round Pell Grant eligibility was discontinued in 2012 – as a budget-cutting alternative to reducing the maximum grant amount - and was just reinstated last year. Given the massive federal budget deficit projections, continuation of the year-round policy is likely somewhat tenuous.
Comment. To the extent the cost of unsubsidized summer enrollment is a barrier to Cal Grant recipients, this bill offers such students who would otherwise like to enroll in summer courses an opportunity to do so. This should lead to more Cal Grant recipients being able to graduate sooner and thus should provide a savings to their overall costs of college attendance. Having more students finish their studies "on time" should also benefit the UC and CSU, by freeing up space on campuses for other students.
On the other hand, the bill could provide an incentive for at least some Cal Grant recipients to take fewer units during the fall and spring semesters, knowing that they could get their tuition costs covered for enrolling in up to 18 units over two summer terms. Such a scenario could come at great cost to the state. The Cal Grant covers full UC and CSU tuition costs, and thus the state's cost is the same whether the recipient takes 12 units or, for example, 15 units in a semester. Therefore, to the extent Cal Grant recipients average fewer than 15 units during the spring and fall semesters, state costs will increase to provide the additional Cal Grants for those students who elect to enroll in summer.
Regardless of how students react to the availability of this additional aid, overall state costs will likely be significant. Costs will depend on the number of Cal Grant recipients who elect to enroll in the summer and the number of units these students take. There are almost 130,000 Cal Grant recipients at CSU and 75,000 at UC. The cost per unit for the summer term is around $420 at UC. The cost at CSU, which varies depending on the number of units taken, can range from $278 to $407 per unit.
The author should consider whether an additional award for up to 18 units (15% of the units generally required for graduation) is necessary to accomplish the on-time completion goals of this bill.
In addition, the bill currently would provide the same benefit to transfer students as entering freshmen. Transfer students theoretically enter UC or CSU having already earned one-half of the units needed for graduation, and should therefore need only 60 more units to obtain their baccalaureate degree. Therefore, limiting these students to a Summer Cal Grant for one semester of up to 9 units would provide parity with entering freshman, who could receive the Summer Cal Grant for up to 18 of their 120 units over two summers. The bill could also provide similar limitations, over the initial years following enactment, to existing UC and CSU upper division students.
Related Legislation. AB 2306 (Santiago), pending on the Assembly Appropriations Suspense file, provides that a California Community College (CCC) applicant, or a former community college student who transfers to a four-year institution after having received a Cal Grant award while enrolled at a community college shall be eligible to receive the Cal Grant award in the amount equivalent to six years of full-time attendance, instead of only four years of full-time attendance, in an undergraduate program.
AB 2248 (McCarty), also on today's committee agenda, requires the California Student Aid Commission and postsecondary institutions participating in the Cal Grant Program to notify students regarding the four-year limit on Cal Grants and the need to take 30 semester units per academic year in order to graduate in four years.
REGISTERED SUPPORT / OPPOSITION:
Support
California State University
University of California
Opposition
None of file.
Analysis Prepared by: Chuck Nicol / HIGHER ED. / (916) 319-3960
Discussed in Hearing
Senate Standing Committee on Appropriations
Assembly Floor
Assembly Standing Committee on Higher Education
Bill Author
Bill Co-Author(s):