Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos 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. Existing law provides that any California resident is entitled to a Cal Grant A B Entitlement award, and requires the commission or a qualifying institution, as provided, to allocate that award, if certain criteria are met, including that the student submit a complete financial aid application, submitted or postmarked no later than March 2 of the academic year of high school graduation or its equivalent for the award year immediately following the academic year of high school graduation or its equivalent, or no later than March 2 of the academic year following high school graduation or its equivalent for the 2nd award year following the year of high school graduation or its equivalent. Existing law provides that any California resident is entitled to a Cal Grant B Entitlement award, and requires the commission to allocate that award, if certain criteria are met, including that the student submit a complete financial aid application in accordance with those same deadlines.

This bill would provide alternative deadlines for submitting a complete financial aid application for a student who is a current or former foster youth, who is attending a qualifying institution that offers baccalaureate degrees or is attending a California community college, and has not yet reached 26 years of age as of July 1 of the initial award year.

Existing law authorizes the renewal of Cal Grant A awards and Cal Grant B awards for a total of the equivalent of 4 years of full-time attendance in an undergraduate program, provided that minimum financial need, as defined, continues to exist, subject to certain exceptions.

This bill would authorize the renewal of Cal Grant A awards and Cal Grant B awards, for a current or former foster youth, for a total of the equivalent of 8 years of full-time attendance in an undergraduate program, provided that minimum financial need continues to exist.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos 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. Existing law provides that any California resident is entitled to a Cal Grant A Entitlement award, and requires the commission or a qualifying institution, as provided, to allocate that award, if certain criteria are met, including that the student submit a complete financial aid application, submitted or postmarked no later than March 2 of the academic year of high school graduation or its equivalent for the award year immediately following the academic year of high school graduation or its equivalent, or no later than March 2 of the academic year following high school graduation or its equivalent for the 2nd award year following the year of high school graduation or its equivalent. Existing law provides that any California resident is entitled to a Cal Grant B Entitlement award, and requires the commission to allocate that award, if certain criteria are met, including that the student submit a complete financial aid application in accordance with those same deadlines.

This bill would provide alternative deadlines for submitting a complete financial aid application for a student who is a current or former foster youth, who is attending a qualifying institution that offers baccalaureate degrees or is attending a California community college, and has not yet reached 26 years of age as of July 1 of the initial award year.

Existing law authorizes the renewal of Cal Grant A awards and Cal Grant B awards for a total of the equivalent of 4 years of full-time attendance in an undergraduate program, provided that minimum financial need, as defined, continues to exist, subject to certain exceptions.

This bill would authorize the renewal of Cal Grant A awards and Cal Grant B awards, for a current or former foster youth, for a total of the equivalent of 8 years of full-time attendance in an undergraduate program, provided that minimum financial need continues to exist.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos 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. Existing law provides that any California resident is entitled to a Cal Grant A Entitlement award, and requires the commission or a qualifying institution, as provided, to allocate that award, if certain criteria are met, including that the student submit a complete financial aid application, submitted or postmarked no later than March 2 of the academic year of high school graduation or its equivalent for the award year immediately following the academic year of high school graduation or its equivalent, or no later than March 2 of the academic year following high school graduation or its equivalent for the 2nd award year following the year of high school graduation or its equivalent. Existing law provides that any California resident is entitled to a Cal Grant B Entitlement award, and requires the commission to allocate that award, if certain criteria are met, including that the student submit a complete financial aid application in accordance with those same deadlines.

This bill would provide alternative deadlines for submitting a complete financial aid application for a student who is a current or former foster youth, who is attending a qualifying institution that offers baccalaureate degrees or is attending a California community college, and has not yet reached 26 years of age as of July 1 of the award year.

Existing law authorizes the renewal of Cal Grant A awards and Cal Grant B awards for a total of the equivalent of 4 years of full-time attendance in an undergraduate program, provided that minimum financial need, as defined, continues to exist, subject to certain exceptions.

This bill would authorize the renewal of Cal Grant A awards and Cal Grant B awards, for a current or former foster youth, for a total of the equivalent of 8 years of full-time attendance in an undergraduate program, provided that minimum financial need continues to exist.

 THIRD READING  

Bill No: SB 940

Author:

:

Vote:

SENATE EDUCATION COMMITTEE: 6-0, 3/14/18

AYES: Allen, Wilk, Galgiani, Leyva, Pan, Vidak

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/18

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

SUBJECT:

SOURCE: Author

DIGEST:

This bill expands eligibility for Cal Grant B Entitlement award for a student who is a current or former foster youth by extending the window of time for submission of an initial financial aid application up to age 26 and by increasing the total award level for this student group from four to eight-years of full-time attendance in an undergraduate program.

ANALYSIS:

Existing law:

1. Authorizes the Cal Grant program, administered by the California Student Aid Commission, to provide grants to financially needy students to attend a college or university. The Cal Grant programs include both the entitlement and the competitive Cal Grant awards. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs and eligibility is based upon financial need, GPA, California residency and other criteria. (Education Code § 69430 - 69433)
2. Provides that any California resident is entitled to a Cal Grant A and B entitlement award if in addition to meeting the specified criteria, submits a complete financial aid application, submitted and postmarked no later than March 2 of the academic year of high school graduation or its equivalent for the award year immediately following the academic year of high school graduation or its equivalent, or no later than March 2 for the second award year following the year of high school graduation or its equivalent. (EC § 69434 (b)(1) and 69435.3(a)(1))
3. 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 four-year period of full-time attendance in an undergraduate program. (EC § 69433.5)
4. Authorizes, an additional year of eligibility for students enrolled in an institutionally prescribed five-year undergraduate program or students enrolled in professional teacher preparation program, as specified. (EC § 69432.9)
5. Establishes the Cal Grant Competitive Award Program and 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 September 2 application deadline. ( EC § 69437).

This bill expands eligibility for Cal Grant B Entitlement Program for a student who is a current or former foster youth. Specifically, this bill:

1. Provides alternative deadlines for submitting an initial financial aid application that extends beyond the existing window of not more than one year after graduating from high school for a student who:
   1. Is a current or former foster youth, as defined.
   2. Applies no later than March 2 of the academic year immediately prior to the year for which funds would be applied and is attending a qualifying institution that offers baccalaureate degrees or no later than September 2 if attending a California community college.
   3. Is under 26 years of age as of July 1 of the award year.
2. Authorizes a student who is a current or former foster youth, as defined, to receive a Cal Grant B award in the amount equivalent to the award level for an eight-year period of full-time attendance in an undergraduate program provided that minimum financial need continues to exist. Current law allows a total award level of four-years of full-time attendance.

Comments

1. Need for the bill. According to the author, “by age 26, just 4 percent of former foster youth have achieved a college degree as compared to 36 percent of the same-age population of young adults. Financial aid plays a key role in student success.” The author asserts foster youth face three main barriers to Cal Grant access, “first foster youth receive less assistance preparing for college and do not submit the required financial aid application within one year of completing high school, as required. Second, the average length of time for a foster youth to complete college exceeds the 4-year limit of the Cal Grant. Finally foster youth attending community college often start school without completing a financial aid application, there by missing the March 2^nd Cal Grant deadline.” This bill seeks to improve college-going rates and outcomes for foster youth by relaxing certain eligibility requirements for entry into the Cal Grant Entitlement program.
2. Entitlement versus competitive program. Current law establishes those awards as an entitlement for students meeting certain eligibility criteria. This means the state automatically funds as many students as qualify. A criterion for qualification is that the initial application 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 competitive program is oversubscribed with applicants that failed to qualify for an Entitlement program, in a given year, approximately 300,000 to 350,000 applicants compete for the 25,750 awards. The provisions in this bill expand the window of time for submission of a Cal Grant application for qualification of an Entitlement award, exclusively for a foster youth.
3. Renewal and duration of awards. The Cal Grant program currently offers awards to cover tuition costs for the equivalent of a four-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. By contrast, other programs, such as institutional aid, base eligibility on the number of units and exceeding the allowed number of units would count against a student’s overall eligibility. Under the Cal Grant program, there are two exceptions to the four-year rule. An additional year of eligibility is offered to students enrolled in a mandatory five-year program, and to students who are enrolled in a teacher credential program. This bill extends award eligibility for foster youth to an eight-year academic period (full-time 12 units or more). For a part-time student (six units) this bill extends award eligibility to a 16-year academic period.
4. Disincentive for 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, four-year and six-year graduation rates. Some of these strategies include promoting full-time attendance (12 units or more) and infusing additional financial assistance (at California Community Colleges (CCC)) to cover lost wages in exchange for full-time attendance. Expanding Cal Grant award eligibility to eight years, as prescribed in this bill, may serve as a disincentive for timely degree completion.
5. Supplanting other forms of aid? Absent the change provided by the provisions in this bill, Cal Grant recipients who exceed the four-year period of eligibility would likely receive financial assistance from federal and/or institutional aid programs to cover the cost of tuition. The federal Pell Grant provides need-based grants to low-income undergraduate students enrolled in participating institutions for up to six-years. Similar to the Pell Grant, most institutional tuition assistance policies offer a six-year period of eligibility. The California State University offers eligible undergraduates the State University Grant, which covers the cost of tuition fees for up to 150 units. According to the University of California (UC), once a student has exhausted their Cal Grant eligibility, the UC subsequently fills the need gap created by the loss of the Grant. At the CCC, the Board of Governors Fee Waiver program (now College promise Grant) fully covers enrollment fees for financially needy students. There is no limit to how long a CCC student can receive a waiver. 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 CCC fee waiver. This bill could result in the Cal Grant program paying for costs that might otherwise be covered by institutional and federal financial aid programs.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, expansion of Cal Grant B Entitlement awards for foster youth could result in additional General Fund costs of approximately $5 million per year. This amount could be higher if there are additional foster youth enrolled in the segments that meet the program’s requirements and submit an application for a Cal Grant.

SUPPORT: (Verified 5/25/18)

2-1-1 San Diego/Imperial

ACE Scholars Services, California State University, San Marcos

Alliance for Children’s Rights

American Academy of Pediatrics

Bakersfield College

Bill Wilson Center

Cal State Fullerton, Guardian Scholars Program

California Community Colleges Association of Student Financial Aid Administrators Association

Casa de Amparo

Central Valley Higher Education Consortium

Cerritos College

Child Advocates of Silicon Valley

Children Now

Children’s Law Center of California

Coalition for Responsible Community Development

Community College League of California

County of Santa Cruz Human Services Department

CSU Bakersfield Guardian Scholars Program

Cuyamaca College

David & Margaret Youth and Family Services

Faculty Association of California Community Colleges

Family Care Network

First Place Youth

Foster Care Counts

Fred Finch Youth Center

John Burton Advocates for Youth

Jovenes, Inc.

Laney College

Learning Rights Law Center

Los Angeles Area Chamber of Commerce

Mount San Antonio College

National Center for Youth Law

New Alternatives, Inc.

Norco College

PATH Scholars Program, CSU Chico

Peacock Acresis

Peralta Community College District

Power to Soar

Redwood Community Action Agency’s Youth Service Bureau

Reedley College

Reedley College-Madera Center

Saints Church Foster Care Project

Sierra College

Silicon Valley Leadership Group

StarVista

The Enriched Scholars Program at Cosumnes River College

The Institute for College Access and Success

Ticket to Dream Foundation

TLC Child and Family Services

Transitional Youth Services of the San Barbara County Education Office

United Friends of the Children

Unity Care

University of California

University of California, San Diego Hope Scholars

University of San Diego

Valley Industry and Commerce Association

Walden Family Services

Numerous individuals

OPPOSITION: (Verified 5/25/18)

None received

Prepared by:

5/26/18 15:07:19

**** END ****

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

SB 940 (Beall) - Student financial aid: Cal Grant Program: foster youth

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

This bill expands eligibility for the Cal Grant B Entitlement award for students who are current or former foster youth by extending the window of time in which they can qualify for an award to up to age 26 and increasing the amount of time that they can receive an award from four years to up to eight years.

Fiscal Impact:

The bill’s expansion of Cal Grant B Entitlement awards for foster youth could result in additional General Fund costs of approximately $5 million per year. This amount could be higher if there are additional foster youth enrolled in the segments that meet the program’s requirements and submit an application for a Cal Grant.

Background:

Existing law authorizes the Cal Grant program, administered by the California Student Aid Commission (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.

Current 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. 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 expands eligibility for the Cal Grant B Entitlement Program for a student who is a current or former foster youth. Specifically, the bill provides alternative deadlines for submitting an initial financial aid application that extends beyond the existing window of not more than one year after graduating from high school for a student who:

1. Is a current or former foster youth, as defined.
2. Applies no later than March 2 of the academic year immediately prior to the year for which funds would be applied and is attending a qualifying institution that offers baccalaureate degrees or no later than September 2 if attending a California community college.
3. Is under 26 years of age as of July 1 of the award year.

This bill also authorizes a student who is a current or former foster youth to receive a Cal Grant B award in the amount equivalent to the award level for up to an eight year period of full-time attendance (current law allows a total of four years) in an undergraduate program provided that minimum financial need continues to exist.

Related Legislation:

SB 1471 (Hernandez) increases the number of Competitive Cal Grant awards from 25,750 to 30,000. This bill is scheduled to be heard by this Committee on April 16, 2018.

Staff Comments:

The Cal Grant Entitlement award is designed to cover tuition for low-income students and 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. By contrast, other programs such as institutional aid, base eligibility on the number of units and exceeding the allowed number of units would count against a student’s overall eligibility. Under the Cal Grant program, there are two exceptions to the 4-year rule. An additional year of eligibility is offered to students enrolled in a mandatory 5-year program and to students who are enrolled in a teacher credential program.

This bill expands eligibility for the Cal Grant B Entitlement award by extending the window of time in which foster youth can qualify to up to age 26 and increasing the amount of time that they can receive an award to up to eight years. The resulting costs will depend on the number of foster youth impacted as well the segment of post-secondary education those students are attending. Depending on the segment, the grant amounts range from about $1,200 at the community colleges to up to $12,630 at the UC. Assuming there are over 2,000 newly eligible foster youth at the various segments and between 160-200 current foster youth that will benefit from the additional time they can receive an award, this bill could result in General Fund costs of approximately $5 million per year. However, this amount could be higher if there are additional foster youth enrolled in the segments that meet the program’s requirements.

-- END --

SENATE COMMITTEE ON EDUCATION

Senator Benjamin Allen, Chair

2017 - 2018 Regular

Bill No: SB 940 Hearing Date: March 14, 2018

Subject: Student financial aid: Cal Grant Program: foster youth

SUMMARY

This bill expands eligibility for Cal Grant A and B Entitlement award for a student who is a current or former foster youth by extending the window of time for submission of an initial financial aid application up to age 26 and by increasing the total award level for this student group from 4 to 8-years of full-time attendance in an undergraduate program.

BACKGROUND

Existing law:

Authorizes the Cal Grant program, administered by the California Student Aid Commission, to provide grants to financially needy students to attend a college or university. The Cal Grant programs include both the entitlement and the competitive Cal Grant awards. The program consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs and eligibility is based upon financial need, GPA, California residency and other criteria. (Education Code § 69430 - 69433)

Provides that any California resident is entitled to a Cal Grant A and B entitlement award if in addition to meeting the specified criteria, submits a complete financial aid application, submitted and postmarked no later than March 2 of the academic year of high school graduation or its equivalent for the award year immediately following the academic year of high school graduation or its equivalent, or no later than March 2 for the 2nd award year following the year of high school graduation or its equivalent. (EC § 69434 (b)(1) and 69435.3(a)(1))

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. (EC § 69433.5)

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. (EC § 69432.9)

Establishes the Cal Grant Competitive Award Program and 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 September 2 application deadline. ( EC § 69437).

ANALYSIS

1. This bill expands eligibility for Cal Grant A and B Entitlement Programs for a student who is a current or former foster youth. Specifically, it:
   1. Provides alternative deadlines for submitting an initial financial aid

application that extends beyond the existing window of not more than one year after graduating from high school for a student who:

• • • 1. Is a current or former foster youth, as defined.
      2. Applies no later than March 2 of the academic year

immediately prior to the year for which funds would be applied and is attending a qualifying institution that offers baccalaureate degrees or no later than September 2 if attending a California community college.

• • • 1. Is under 26 years of age as of July 1 of the award year.
  1. Authorizes a student who is a current or former foster youth, as defined, to

receive a Cal Grant A or B award in the amount equivalent to the award level for an 8-year period of full-time attendance in an undergraduate program provided that minimum financial need continues to exist. Current law allows a total award level of 4-years of full-time attendance.

STAFF COMMENTS

1. Need for the bill. According to the author, “by age 26, just 4 percent of former foster youth have achieved a college degree as compared to 36 percent of the same-age population of young adults. Financial aid plays a key role in student success.” The author asserts, “foster youth face three main barriers to Cal Grant access, “first foster youth receive less assistance preparing for college and do not submit the required financial aid application within one year of completing high school, as required. Second, the average length of time for a foster youth to complete college exceeds the 4-year limit of the Cal Grant. Finally foster youth attending community college often start school without completing a financial aid application, there by missing the March 2^nd Cal Grant deadline.”

This bill seeks to improve college-going rates and outcomes for foster youth by relaxing certain eligibility requirements for entry into the Cal Grant Entitlement program.

1. 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. 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.

California Community College (CCC) students primarily receive Cal Grant B access awards to cover non-tuition costs. These students would also receive CCC fee waivers (Cal Grant does not cover CCC 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.

Since Cal Grant A only covers tuition and the majority of foster youth attend CCC where those fees are waived, staff recommends the bill be amended to make it applicable for Cal Grant B Entitlement award only and delete provisions relative to Cal Grant A.

1. Entitlement versus competitive program. Current law establishes those awards as an entitlement for students meeting certain eligibility criteria. This means the state automatically funds as many students as qualify. A criterion for qualification is that the initial application 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, as noted in the background of the analysis, only 25,700 Competitive Cal Grants are statutorily authorized annually. According to the California Student Aid Commission, the competitive program is oversubscribed with applicants that failed to meet the Entitlement programs (High School and Transfer), in a given year, approximately 300,000 to 350,000 applicants compete for the 25,750 awards.

The committee may wish to consider the following:

• Cal Grant Entitlement award is designed to cover tuition for low-income students. Should eligibility requirements for Cal Grant awards be modified to consider other social-economic factors such as foster youth status or military veteran status?
• Is the extension of an entitlement a greater policy priority than, for example, increase the access award amount under the Cal Grant B or the number of competitive awards available?

1. Renewal and duration of 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. By contrast, other programs, such as institutional aid, base eligibility on the number of units and exceeding the allowed number of units would count against a student’s overall eligibility. Under the Cal Grant program, there are two exceptions to the 4-year rule. An additional year of eligibility is offered to students enrolled in a mandatory 5-year program, and to students who are enrolled in a teacher credential program. This bill extends award eligibility for foster youth to an 8-year academic period (full-time 12 units or more). For a part-time student (6 units) this bill would extend award eligibility to a 16-year academic period.

The committee may wish to consider the following:

• How long should a student be granted an opportunity for an entitlement

award to attend college?

• How much greater access is achieved by each additional year?

1. Disincentive for 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. Some of these strategies include promoting full-time attendance (12 units or more), creating clear curricular pathways, establishing targeted support services and reducing the number of unnecessary classes that lead students off track. In addition to programmatic changes, an eligible student attending community college may now receive up to $4,270 annually for living expenses in exchange for full-time attendance at a California Community College through the Full-Time Student Success grant which provides an annual supplemental award of $600 to Cal Grant B and C recipients who are enrolled full-time (12 units or more) and Completion Grant, established by SB 85 (Committee on Budget, Chapter 23, and Statutes of 2017) which provides a grant award of $2,000 annually to Full-Time Student Success recipients who complete 15 units within an academic year.

The committee may wish to consider whether expanding the ability to receive a Cal Grant award to 8 years undermine initiatives to improve completion rates.

1. Why is timely completion important? Aside from benefitting the state through increased access and more efficient movement of students through college, timely degree completion also reduces the overall cost of higher education for a student. As an example, according to a report by the Campaign for College Opportunity, a student who takes four years to earn an associate degree can spend as much as $15,200 more on fees and other expenses, and will earn $33,500 less than someone who graduated in two years. As a result, of these additional years, this student would incur $48,700 in extra expenses and lost wages.
2. Supplanting other forms of aid? Absent the change provided by the provisions in this bill, Cal Grant recipients who exceed the 4-year period of eligibility would likely receive financial assistance from federal and/or institutional aid programs to cover the cost of tuition. The federal Pell Grant provides need-based grants to low-income undergraduate students enrolled in participating institutions for up to 6-years. Similar to the Pell Grant, most institutional assistance policies offer a 6-year period of eligibility. The California State University offers eligible undergraduates the State University Grant, which covers the cost of tuition fees for up to 150 units. According to the University of California, once a student has exhausted their Cal Grant eligibility, the University of California (UC) subsequently fills the need gap created by the loss of the Grant. At the California Community Colleges (CCC), the Board of Governors Fee Waiver program (now CCC Promise Grant) fully covers enrollment fees for financially needy students. There is no limit to how long a CCC student can receive a waiver. The institutional aid programs do not cover non-tuition costs.

This bill could result in the Cal Grant program paying for costs that might otherwise be covered by institutional and federal financial aid programs.

1. Related Legislation.

SB 967 (Berryhill, 2018), seeks to prohibit CCC, UC and California State University campuses from charging mandatory systemwide tuition or fees to current or former foster youth, who meet certain requirements, for a total of the equivalent of attendance in a 4-year undergraduate program. SB 967 is pending referral in the Senate Rules Committee.

AB 2306 (Santiago, 2018), among other things, increasing the total award level from 4 to 6-years of full-time attendance in an undergraduate program. AB 2306 is pending in Assembly Higher Education Committee.

SUPPORT

2-1-1 San Diego/Imperial

ACE Scholars Services, California State University, San Marcos

Alliance for Children’s Rights

Alliance for Children’s Rights

American Academy of Pediatrics

Bakersfield College

Bill Wilson Center

Cal State Fullerton, Guardian Scholars Program

California Community College Student Financial Aid Administrators

California Community College Student Financial Aid Administrators Association

Casa de Amparo

Central Valley Higher Education Consortium

Cerritos College

Child Advocates of Silicon Valley

Children Now

Children’s Law Center of California

Coalition for Responsible Community Development

Community College League of California

County of Santa Cruz Human Services Department

County of Santa Cruz Human Services Department

CSU Bakersfield Guardian Scholars Program

Cuyamaca College

David & Margaret Youth and Family Services

Faculty Association of California Community Colleges

Family Care Network

First Place Youth

Foster Care Counts

Fred Finch Youth Center

John Burton Advocates for Youth

Jovenes, Inc.

Laney College

Learning Rights Law Center

Los Angeles Area Chamber of Commerce

Mount San Antonio College

National Center for Youth Law

New Alternatives, Inc.

Norco College

PATH Scholars Program, CSU Chico

Peacock Acresis

Peralta Community College District

Power to Soar

Redwood Community Action Agency’s Youth Service Bureau

Reedley College

Reedley College-Madera Center

Saints Church Foster Care Project

Sierra College

Silicon Valley Leadership Group

StarVista

The Enriched Scholars Program at Cosumnes River College

The Institute for College Access and Success

Ticket to Dream Foundation

TLC Child and Family Services

Transitional Youth Services of the San Barbara County Education Office

United Friends of the Children

Unity Care

University of California

University of California, San Diego Hope Scholars

University of San Diego

Valley Industry and Commerce Association

Walden Family Services

Numerous individuals

OPPOSITION

None received

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