AB 789: Student financial aid: Cal Grants: satisfactory academic progress.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2023-10-08
Current Status:
Passed
(2023-10-08: Chaptered by Secretary of State - Chapter 544, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill requires California colleges that participate in the Cal Grant program to adopt satisfactory academic progress (SAP) rules that match federal standards and to set minimum grade‑point and course‑completion pace at the federal minimum. It also requires schools to give students clear SAP information at orientation and online, notify students each term if they fall short, count only transfer credits that apply to a student’s current program, and provide broad, flexible appeals rights (including multiple appeals, a second review, waiving third‑party documents when unavailable, and a 45‑day decision timeline) so students can keep or regain financial aid.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Expanded 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. Existing law establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. For a student to qualify for a Cal Grant award, existing law requires that the student, among other things, make satisfactory academic progress at a qualifying institution. Existing law defines satisfactory academic progress as those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. Existing law authorizes the commission to adopt regulations defining satisfactory academic progress in a manner that is consistent with the federal standards.
This bill would require, as part of the criteria to be a qualifying institution under the Cal Grant Program, an institution, by the start of the 202425 academic year, to comply with various requirements regarding satisfactory academic progress standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards. The bill would delete the commissions authorization to adopt regulations defining satisfactory academic progress.
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Expanded 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. Existing law establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. For a student to qualify for a Cal Grant award, existing law requires that the student, among other things, make satisfactory academic progress at a qualifying institution. Existing law defines satisfactory academic progress as those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. Existing law authorizes the commission to adopt regulations defining satisfactory academic progress in a manner that is consistent with the federal standards.
This bill would require, as part of the criteria to be a qualifying institution under the Cal Grant Program, an institution, by the start of the 202425 academic year, to comply with various requirements regarding satisfactory academic progress standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards. The bill would delete the commissions authorization to adopt regulations defining satisfactory academic progress.
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Expanded 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. Existing law establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. For a student to qualify for a Cal Grant award, existing law requires that the student, among other things, make satisfactory academic progress at a qualifying institution. Existing law defines satisfactory academic progress as those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. Existing law authorizes the commission to adopt regulations defining satisfactory academic progress in a manner that is consistent with the federal standards.
This bill would require, as part of the criteria to be a qualifying institution under the Cal Grant Program, an institution, by the start of the 202425 academic year, to comply with various requirements regarding satisfactory academic progress standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards. The bill would delete the commissions authorization to adopt regulations defining satisfactory academic progress.
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Expanded 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. Existing law establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. For a student to qualify for a Cal Grant award, existing law requires that the student, among other things, make satisfactory academic progress at a qualifying institution. Existing law defines satisfactory academic progress as those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. Existing law authorizes the commission to adopt regulations defining satisfactory academic progress in a manner that is consistent with the federal standards.
This bill would require, as part of the criteria to be a qualifying institution under the Cal Grant Program, an institution, by the start of the 202425 academic year, to comply with various requirements regarding satisfactory academic progress standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards. The bill would delete the commissions authorization to adopt regulations defining satisfactory academic progress.
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Expanded 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. Existing law establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. For a student to qualify for a Cal Grant award, existing law requires that the student, among other things, make satisfactory academic progress at a qualifying institution. Existing law defines satisfactory academic progress as those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. Existing law authorizes the commission to adopt regulations defining satisfactory academic progress in a manner that is consistent with the federal standards.
This bill would require, as part of the criteria to be a qualifying institution under the Cal Grant Program, an institution, by the start of the 202425 academic year, to comply with various requirements regarding satisfactory academic progress standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards. The bill would delete the commissions authorization to adopt regulations defining satisfactory academic progress.
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Expanded 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. Existing law establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. For a student to qualify for a Cal Grant award, existing law requires that the student, among other things, make satisfactory academic progress at a qualifying institution. Existing law defines satisfactory academic progress as those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. Existing law authorizes the commission to adopt regulations defining satisfactory academic progress in a manner that is consistent with the federal standards.
This bill would require, as part of the criteria to be a qualifying institution under the Cal Grant Program, an institution, by the start of the 202425 academic year, to comply with various requirements regarding satisfactory academic progress standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards. The bill would also require the office of the Chancellor of the California Community Colleges, the office of the Chancellor of the California State University, and as a condition of participation in the Cal Grant Program, the office of the President of the University of California to, among other things, annually report certain information regarding students who became ineligible to receive financial aid because they did not achieve satisfactory academic progress. The bill would delete the commissions authorization to adopt regulations defining satisfactory academic progress.
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Expanded 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. Existing law establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. For a student to qualify for a Cal Grant award, existing law requires that the student, among other things, make satisfactory academic progress at a qualifying institution. Existing law defines satisfactory academic progress as those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. Existing law authorizes the commission to adopt regulations defining satisfactory academic progress in a manner that is consistent with the federal standards.
This bill would require, as part of the criteria to be a qualifying institution under the Cal Grant Program, an institution, by the start of the 202425 academic year, to comply with various requirements regarding satisfactory academic progress standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards. The bill would also require the office of the Chancellor of the California Community Colleges, the office of the Chancellor of the California State University, and as a condition of participation in the Cal Grant Program, the office of the President of the University of California to, among other things, annually report certain information regarding students who became ineligible to receive financial aid because they did not achieve satisfactory academic progress. The bill would delete the commissions authorization to adopt regulations defining satisfactory academic progress.
Existing law, the Cal Grant Program, establishes the Cal Grant A and B Entitlement Awards, the California Community College Expanded 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. Existing law establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. For a student to qualify for a Cal Grant award, existing law requires that the student, among other things, make satisfactory academic progress at a qualifying institution. Existing law defines satisfactory academic progress as those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations. Existing law authorizes the commission to adopt regulations defining satisfactory academic progress in a manner that is consistent with the federal standards.
This bill would require, as part of the criteria to be a qualifying institution under the Cal Grant Program, an institution, by the start of the 202425 academic year, to comply with various requirements regarding satisfactory academic progress standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards. The bill would also require the office of the Chancellor of the California Community Colleges, the office of the Chancellor of the California State University, and as a condition of participation in the Cal Grant Program, the office of the President of the University of California to, among other things, annually report certain information regarding students who became ineligible to receive financial aid because they did not achieve satisfactory academic progress. The bill would delete the commissions authorization to adopt regulations defining satisfactory academic progress.
The Legislature finds and declares all of the following:
(a)California has made substantial gains in ensuring low-income students receive financial aid at the onset of their academic careers through the expansion of the Cal Grant and California College Promise Grant programs.
(b)In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by Section 1091 of Title 20 of the United States Code and Section 668.34 of Title 34 of the Code of Federal Regulations.
(c)A report released in July 2021, titled The Overlooked Obstacle How Satisfactory Academic Progress Policies Impede Student Success and Equity (The Overlooked Obstacle), found that 24 percent of first-year California Community College students receiving a federal Pell Grant did not meet SAP standards during their first two consecutive academic terms. Black and Native American students were twice as likely as White and Asian students to not meet those standards. Students not meeting SAP standards was also found to be a significant issue at four-year universities.
(d)A 2021 study comparing the characteristics of students who did not meet SAP standards to those who did meet those standards found no difference in the students motivation to attend and succeed in college. However, the students who did not meet those standards had significantly more life responsibilities, such as childcare and employment demands, and fewer resources, including access to food and housing, flexible work schedules, and reliable transportation.
(e)Students who are deemed as not meeting their institutions SAP standards during any two consecutive academic terms or one year of enrollment must have their Cal Grant and federal financial aid terminated unless they successfully appeal that determination.
(f)Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual postsecondary educational institution. Some postsecondary educational institutions that participate in state-funded financial aid programs do not take full advantage of federal flexibility related to grounds for appeal, unnecessarily limiting students ability to maintain financial aid.
(g)The Overlooked Obstacle further revealed that 87 percent of the California Community College students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
SEC. 2.Section 69432.7 of the Education Code is amended to read:69432.7.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, technology, 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) to (4), inclusive, 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 website of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website 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.
(III)Notwithstanding subclause (II), the commission may grant an appeal for the 202324 academic year if the institution failed to meet the three-year cohort default rate solely due to acquisition of an out-of-state institution that impacted its three-year cohort default rate, and the acquired out-of-state institution has since closed any time between the 201920 to 202223 academic years, inclusive. The institutions Cal Grant eligibility shall not be transferrable if the institution is bought or sold during the 202324 fiscal year. This authority shall be in effect for an appeal for the 202324 academic year only and shall sunset on July 1, 2023. The institutions Cal Grant eligibility shall not be transferrable to a new site acquired by the institution.
(4)By the start of the 202425 academic year, the institution shall develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards published in Title 34 of the Code of Federal Regulations. The institution shall also comply with all of the following requirements:
(A)Set the standards for grade point average and pace of completion at the minimum federal standards as determined by Section 668.34(a) of Title 34 of the Code of Federal Regulations.
(B)Provide information to students about the institutions satisfactory academic progress standards and financial aid appeals process during new student orientation and include student-friendly language on the institutions internet website and financial aid award letters regarding the standards and appeals process. The institution shall request its faculty to include student-friendly language on course syllabi regarding the standards and appeals process.
(C)Notify a student when the student has not achieved the satisfactory academic progress standards following every term of enrollment, regardless of the frequency at which satisfactory academic progress is formally evaluated. This subparagraph does not preclude an institution from conducting the formal evaluation annually.
(D)Evaluate whether a student satisfies the grade point average and pace of completion standards set forth in subparagraph (A) based on cumulative measures. An institution shall not require a student to satisfy the minimum grade point average and pace of completion standards for each individual term. This paragraph does not preclude an institution from requiring a student on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations to comply with the terms of the students academic plan in order to maintain financial aid eligibility.
(E)Exclude remedial coursework from maximum timeframe calculations if the institution offers remedial coursework.
(F)Allow a student who fulfills the terms and conditions of the students academic plan to remain on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the students academic plan.
(G)In the case of a satisfactory academic progress determination for a transfer student, when calculating maximum timeframe as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, only include those credits from other institutions that count towards the students current program of study.
(H)Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet satisfactory academic progress, as defined by the institution where the student is enrolled, subject to all of the following:
(i)A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the total number of appeals that may be submitted by a student throughout the duration of the students enrollment. The institution may limit the number of appeals per term, but each appeal that is denied shall be subject to the second review process pursuant to clause (vi). The institution shall not impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term.
(ii)A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment.
(iii)The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process, including the process for a student to file an appeal, information about the second review process for an appeal that is denied as described in clause (vi), and how a student may request a second review.
(iv)In reviewing a students appeal, the institution may consider any additional special circumstances that the institution deems appropriate, and shall consider a broad range of special circumstances, including, but not limited to, any of the following:
(I)Death of a relative or other significant person.
(II)Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person.
(III)Pregnancy or birth of a child.
(IV)Homelessness.
(V)Loss of childcare.
(VI)Loss or change in employment.
(VII)Loss of access to personal or public transportation.
(VIII)Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or civil liability.
(IX)Natural disaster.
(X)Change of major.
(v)The institution shall review a students appeal and notify the student of the appeal decision within 45 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the students appeal is pending.
(vi)The institution shall provide a second review process for an appeal that is denied if requested by the student. The second review shall be conducted by a reviewer who did not participate in the first review.
(vii)The institution shall waive any requirement for third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.
(viii)This subparagraph shall not be interpreted to require institutions to provide retroactive financial aid for a term preceding the term in which a student reenrolls.
(m)Satisfactory academic progress means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations.
The Legislature finds and declares all of the following:
(a)California has made substantial gains in ensuring low-income students receive financial aid at the onset of their academic careers through the expansion of the Cal Grant and California College Promise Grant programs.
(b)In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by Section 1091 of Title 20 of the United States Code and Section 668.34 of Title 34 of the Code of Federal Regulations.
(c)A report released in July 2021, titled The Overlooked Obstacle How Satisfactory Academic Progress Policies Impede Student Success and Equity (The Overlooked Obstacle), found that 24 percent of first-year California Community College students receiving a federal Pell Grant did not meet SAP standards during their first two consecutive academic terms. Black and Native American students were twice as likely as White and Asian students to not meet those standards. Students not meeting SAP standards was also found to be a significant issue at four-year universities.
(d)A 2021 study comparing the characteristics of students who did not meet SAP standards to those who did meet those standards found no difference in the students motivation to attend and succeed in college. However, the students who did not meet those standards had significantly more life responsibilities, such as childcare and employment demands, and fewer resources, including access to food and housing, flexible work schedules, and reliable transportation.
(e)Students who are deemed as not meeting their institutions SAP standards during any two consecutive academic terms or one year of enrollment must have their Cal Grant and federal financial aid terminated unless they successfully appeal that determination.
(f)Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual postsecondary educational institution. Some postsecondary educational institutions that participate in state-funded financial aid programs do not take full advantage of federal flexibility related to grounds for appeal, unnecessarily limiting students ability to maintain financial aid.
(g)The Overlooked Obstacle further revealed that 87 percent of the California Community College students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
SEC. 2.Section 69432.7 of the Education Code is amended to read:69432.7.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, technology, 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) to (4), inclusive, 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 website of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website 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.
(III)Notwithstanding subclause (II), the commission may grant an appeal for the 202324 academic year if the institution failed to meet the three-year cohort default rate solely due to acquisition of an out-of-state institution that impacted its three-year cohort default rate, and the acquired out-of-state institution has since closed any time between the 201920 to 202223 academic years, inclusive. The institutions Cal Grant eligibility shall not be transferrable if the institution is bought or sold during the 202324 fiscal year. This authority shall be in effect for an appeal for the 202324 academic year only and shall sunset on July 1, 2023. The institutions Cal Grant eligibility shall not be transferrable to a new site acquired by the institution.
(4)By the start of the 202425 academic year, the institution shall develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards published in Title 34 of the Code of Federal Regulations. The institution shall also comply with all of the following requirements:
(A)Set the standards for grade point average and pace of completion at the minimum federal standards as determined by Section 668.34(a) of Title 34 of the Code of Federal Regulations.
(B)Provide information to students about the institutions satisfactory academic progress standards and financial aid appeals process during new student orientation and include student-friendly language on the institutions internet website and financial aid award letters regarding the standards and appeals process. The institution shall request its faculty to include student-friendly language on course syllabi regarding the standards and appeals process.
(C)Notify a student when the student has not achieved the satisfactory academic progress standards following every term of enrollment, regardless of the frequency at which satisfactory academic progress is formally evaluated. This subparagraph does not preclude an institution from conducting the formal evaluation annually.
(D)Evaluate whether a student satisfies the grade point average and pace of completion standards set forth in subparagraph (A) based on cumulative measures. An institution shall not require a student to satisfy the minimum grade point average and pace of completion standards for each individual term. This paragraph does not preclude an institution from requiring a student on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations to comply with the terms of the students academic plan in order to maintain financial aid eligibility.
(E)Exclude remedial coursework from maximum timeframe calculations if the institution offers remedial coursework.
(F)Allow a student who fulfills the terms and conditions of the students academic plan to remain on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the students academic plan.
(G)In the case of a satisfactory academic progress determination for a transfer student, when calculating maximum timeframe as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, only include those credits from other institutions that count towards the students current program of study.
(H)Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet satisfactory academic progress, as defined by the institution where the student is enrolled, subject to all of the following:
(i)A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the total number of appeals that may be submitted by a student throughout the duration of the students enrollment. The institution may limit the number of appeals per term, but each appeal that is denied shall be subject to the second review process pursuant to clause (vi). The institution shall not impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term.
(ii)A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment.
(iii)The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process, including the process for a student to file an appeal, information about the second review process for an appeal that is denied as described in clause (vi), and how a student may request a second review.
(iv)In reviewing a students appeal, the institution may consider any additional special circumstances that the institution deems appropriate, and shall consider a broad range of special circumstances, including, but not limited to, any of the following:
(I)Death of a relative or other significant person.
(II)Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person.
(III)Pregnancy or birth of a child.
(IV)Homelessness.
(V)Loss of childcare.
(VI)Loss or change in employment.
(VII)Loss of access to personal or public transportation.
(VIII)Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or civil liability.
(IX)Natural disaster.
(X)Change of major.
(v)The institution shall review a students appeal and notify the student of the appeal decision within 45 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the students appeal is pending.
(vi)The institution shall provide a second review process for an appeal that is denied if requested by the student. The second review shall be conducted by a reviewer who did not participate in the first review.
(vii)The institution shall waive any requirement for third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.
(viii)This subparagraph shall not be interpreted to require institutions to provide retroactive financial aid for a term preceding the term in which a student reenrolls.
(m)Satisfactory academic progress means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations.
The Legislature finds and declares all of the following:
(a)California has made substantial gains in ensuring low-income students receive financial aid at the onset of their academic careers through the expansion of the Cal Grant and California College Promise Grant programs.
(b)In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by Section 1091 of Title 20 of the United States Code and Section 668.34 of Title 34 of the Code of Federal Regulations.
(c)A report released in July 2021, titled The Overlooked Obstacle How Satisfactory Academic Progress Policies Impede Student Success and Equity (The Overlooked Obstacle), found that 24 percent of first-year California Community College students receiving a federal Pell Grant did not meet SAP standards during their first two consecutive academic terms. Black and Native American students were twice as likely as White and Asian students to not meet those standards. Students not meeting SAP standards was also found to be a significant issue at four-year universities.
(d)A 2021 study comparing the characteristics of students who did not meet SAP standards to those who did meet those standards found no difference in the students motivation to attend and succeed in college. However, the students who did not meet those standards had significantly more life responsibilities, such as childcare and employment demands, and fewer resources, including access to food and housing, flexible work schedules, and reliable transportation.
(e)Students who are deemed as not meeting their institutions SAP standards during any two consecutive academic terms or one year of enrollment must have their Cal Grant and federal financial aid terminated unless they successfully appeal that determination.
(f)Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual postsecondary educational institution. Some postsecondary educational institutions that participate in state-funded financial aid programs do not take full advantage of federal flexibility related to grounds for appeal, unnecessarily limiting students ability to maintain financial aid.
(g)The Overlooked Obstacle further revealed that 87 percent of the California Community College students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
SEC. 2.Section 69432.7 of the Education Code is amended to read:69432.7.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, technology, 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) to (4), inclusive, 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 website of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website 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.
(III)Notwithstanding subclause (II), the commission may grant an appeal for the 202324 academic year if the institution failed to meet the three-year cohort default rate solely due to acquisition of an out-of-state institution that impacted its three-year cohort default rate, and the acquired out-of-state institution has since closed any time between the 201920 to 202223 academic years, inclusive. The institutions Cal Grant eligibility shall not be transferrable if the institution is bought or sold during the 202324 fiscal year. This authority shall be in effect for an appeal for the 202324 academic year only and shall sunset on July 1, 2023. The institutions Cal Grant eligibility shall not be transferrable to a new site acquired by the institution.
(4)By the start of the 202425 academic year, the institution shall develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards published in Title 34 of the Code of Federal Regulations. The institution shall also comply with all of the following requirements:
(A)Set the standards for grade point average and pace of completion at the minimum federal standards as determined by Section 668.34(a) of Title 34 of the Code of Federal Regulations.
(B)Provide information to students about the institutions satisfactory academic progress standards and financial aid appeals process during new student orientation and include student-friendly language on the institutions internet website and financial aid award letters regarding the standards and appeals process. The institution shall request its faculty to include student-friendly language on course syllabi regarding the standards and appeals process.
(C)Notify a student when the student has not achieved the satisfactory academic progress standards following every term of enrollment, regardless of the frequency at which satisfactory academic progress is formally evaluated. This subparagraph does not preclude an institution from conducting the formal evaluation annually.
(D)Evaluate adherence to grade point average and pace of completion standards based only on cumulative measures and not on individual term measures.(D)Evaluate whether a student satisfies the grade point average and pace of completion standards set forth in subparagraph (A) based on cumulative measures. An institution shall not require a student to satisfy the minimum grade point average and pace of completion standards for each individual term. This paragraph does not preclude an institution from requiring a student on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations to comply with the terms of the students academic plan in order to maintain financial aid eligibility.
(E)Exclude remedial coursework from maximum timeframe calculations if the institution offers remedial coursework.
(F)Allow a student who fulfills the terms and conditions of the students academic plan to remain on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the students academic plan.
(G)In the case of a satisfactory academic progress determination for a transfer student, when calculating maximum timeframe as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, only include those credits from other institutions that count towards the students current program of study.
(H)Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet satisfactory academic progress, as defined by the institution where the student is enrolled, subject to all of the following:
(i)A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the total number of appeals that may be submitted by a student throughout the duration of the students enrollment. The institution may limit the number of appeals per term, but each appeal that is denied shall be subject to the second review process pursuant to clause (vi). The institution shall not impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term.
(ii)A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment.
(iii)The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process, including the process for a student to file an appeal, information about the second review process for an appeal that is denied as described in clause (vi), and how a student may request a second review.
(iv)In reviewing a students appeal, the institution may consider any additional special circumstances that the institution deems appropriate, and shall consider a broad range of special circumstances, including, but not limited to, any of the following:
(I)Death of a relative or other significant person.
(II)Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person.
(III)Pregnancy or birth of a child.
(IV)Homelessness.
(V)Loss of childcare.
(VI)Loss or change in employment.
(VII)Loss of access to personal or public transportation.
(VIII)Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or civil liability.
(IX)Natural disaster.
(X)Change of major.
(v)The institution shall review a students appeal and notify the student of the appeal decision within 45 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the students appeal is pending.
(vi)The institution shall provide a second review process for an appeal that is denied if requested by the student. The second review shall be conducted by a reviewer who did not participate in the first review.
(vii)The institution shall waive any requirement for third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.
(viii)This subparagraph shall not be interpreted to require institutions to provide retroactive financial aid for a term preceding the term in which a student reenrolls.
(m)Satisfactory academic progress means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations.
The Legislature finds and declares all of the following:
(a)California has made substantial gains in ensuring low-income students receive financial aid at the onset of their academic careers through the expansion of the Cal Grant and California College Promise Grant programs.
(b)In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by Section 1091 of Title 20 of the United States Code and Section 668.34 of Title 34 of the Code of Federal Regulations.
(c)A report released in July 2021, titled The Overlooked Obstacle How Satisfactory Academic Progress Policies Impede Student Success and Equity (The Overlooked Obstacle), found that 24 percent of first-year California Community College students receiving a federal Pell Grant did not meet SAP standards during their first two consecutive academic terms. Black and Native American students were twice as likely as White and Asian students to not meet those standards. Students not meeting SAP standards was also found to be a significant issue at four-year universities.
(d)A 2021 study comparing the characteristics of students who did not meet SAP standards to those who did meet those standards found no difference in the students motivation to attend and succeed in college. However, the students who did not meet those standards had significantly more life responsibilities, such as childcare and employment demands, and fewer resources, including access to food and housing, flexible work schedules, and reliable transportation.
(e)Students who are deemed as not meeting their institutions SAP standards during any two consecutive academic terms or one year of enrollment must have their Cal Grant and federal financial aid terminated unless they successfully appeal that determination.
(f)Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual postsecondary educational institution. Some postsecondary educational institutions that participate in state-funded financial aid programs do not take full advantage of federal flexibility related to grounds for appeal, unnecessarily limiting students ability to maintain financial aid.
(g)The Overlooked Obstacle further revealed that 87 percent of the California Community College students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
SEC. 2.Section 69432.7 of the Education Code is amended to read:69432.7.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, technology, 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) to (4), inclusive, 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 website of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website 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.
(III)Notwithstanding subclause (II), the commission may grant an appeal for the 202324 academic year if the institution failed to meet the three-year cohort default rate solely due to acquisition of an out-of-state institution that impacted its three-year cohort default rate, and the acquired out-of-state institution has since closed any time between the 201920 to 202223 academic years, inclusive. The institutions Cal Grant eligibility shall not be transferrable if the institution is bought or sold during the 202324 fiscal year. This authority shall be in effect for an appeal for the 202324 academic year only and shall sunset on July 1, 2023. The institutions Cal Grant eligibility shall not be transferrable to a new site acquired by the institution.
(4)By the start of the 202425 academic year, the institution shall develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards published in Title 34 of the Code of Federal Regulations. The institution shall also comply with all of the following requirements:
(A)Set the standards for grade point average and pace of completion at the minimum federal standards as determined by Section 668.34(a) of Title 34 of the Code of Federal Regulations.
(B)Provide information to students about the institutions satisfactory academic progress standards and financial aid appeals process during new student orientation and include student-friendly language on the institutions internet website, course syllabi, website and financial aid award letters regarding the standards and appeals process. The institution shall request its faculty to include student-friendly language on course syllabi regarding the standards and appeals process.
(C)Notify a student when the student has not achieved the satisfactory academic progress standards following every term of enrollment, regardless of the frequency at which satisfactory academic progress is formally evaluated.
(D)Evaluate adherence to grade point average and pace of completion standards based only on cumulative measures and not on individual term measures.
(E)Exclude remedial coursework from maximum timeframe calculations if the institution offers remedial coursework.
(F)Allow a student who fulfills the terms and conditions of the students academic plan to remain on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the students academic plan.
(G)In the case of a satisfactory academic progress determination for a transfer student, when calculating maximum timeframe as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, only include those credits from other institutions that count towards the students current program of study.
(H)Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet satisfactory academic progress, as defined by the institution where the student is enrolled, subject to all of the following:
(i)A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the total number of appeals that may be submitted by a student throughout the duration of the students enrollment. The institution may limit the number of appeals per term, but each appeal that is denied shall be subject to the second review process pursuant to clause (vi). The institution shall not impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term.
(ii)A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment.
(iii)The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process, including the process for a student to file an appeal, information about the second review process for an appeal that is denied as described in clause (vi), and how a student may request a second review.
(iv)In reviewing a students appeal, the institution may consider any additional special circumstances that the institution deems appropriate, and shall consider a broad range of special circumstances, including, but not limited to, any of the following:
(I)Death of a relative or other significant person.
(II)Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person.
(III)Pregnancy or birth of a child.
(IV)Homelessness.
(V)Loss of childcare.
(VI)Loss or change in employment.
(VII)Loss of access to personal or public transportation.
(VIII)Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or civil liability.
(IX)Natural disaster.
(X)Change of major.
(v)The institution shall review a students appeal and notify the student of the appeal decision within 45 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the students appeal is pending.
(vi)The institution shall provide a second review process for an appeal that is denied if requested by the student. The second review shall be conducted by a reviewer who did not participate in the first review.
(vii)The institution shall waive any requirement for third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.
(viii)This subparagraph shall not be interpreted to require institutions to provide retroactive financial aid for a term preceding the term in which a student reenrolls.
(m)Satisfactory academic progress means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations.
The Legislature finds and declares all of the following:
(a)California has made substantial gains in ensuring low-income students receive financial aid at the onset of their academic careers through the expansion of the Cal Grant and California College Promise Grant programs.
(b)In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by Section 1091 of Title 20 of the United States Code and Section 668.34 of Title 34 of the Code of Federal Regulations.
(c)A report released in July 2021, titled The Overlooked Obstacle How Satisfactory Academic Progress Policies Impede Student Success and Equity (The Overlooked Obstacle), found that 24 percent of first-year California Community College students receiving a federal Pell Grant did not meet SAP standards during their first two consecutive academic terms. Black and Native American students were twice as likely as White and Asian students to not meet those standards. Students not meeting SAP standards was also found to be a significant issue at four-year universities.
(d)A 2021 study comparing the characteristics of students who did not meet SAP standards to those who did meet those standards found no difference in the students motivation to attend and succeed in college. However, the students who did not meet those standards had significantly more life responsibilities, such as childcare and employment demands, and fewer resources, including access to food and housing, flexible work schedules, and reliable transportation.
(e)Students who are deemed as not meeting their institutions SAP standards during any two consecutive academic terms or one year of enrollment must have their Cal Grant and federal financial aid terminated unless they successfully appeal that determination.
(f)Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual postsecondary educational institution. Some postsecondary educational institutions that participate in state-funded financial aid programs do not take full advantage of federal flexibility related to grounds for appeal, unnecessarily limiting students ability to maintain financial aid.
(g)The Overlooked Obstacle further revealed that 87 percent of the California Community College students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
SEC. 2.Section 69432.7 of the Education Code is amended to read:69432.7.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, technology, 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) to (4), inclusive, 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 website of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website 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.
(III)Notwithstanding subclause (II), the commission may grant an appeal for the 202324 academic year if the institution failed to meet the three-year cohort default rate solely due to acquisition of an out-of-state institution that impacted its three-year cohort default rate, and the acquired out-of-state institution has since closed any time between the 201920 to 202223 academic years, inclusive. The institutions Cal Grant eligibility shall not be transferrable if the institution is bought or sold during the 202324 fiscal year. This authority shall be in effect for an appeal for the 202324 academic year only and shall sunset on July 1, 2023. The institutions Cal Grant eligibility shall not be transferrable to a new site acquired by the institution.
(4)By the start of the 202425 academic year, the institution shall develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards published in Title 34 of the Code of Federal Regulations. The institution shall also comply with all of the following requirements:
(A)Set the standards for grade point average and pace of completion at the minimum federal standards as determined by Section 668.34(a) of Title 34 of the Code of Federal Regulations.
(B)Provide information to students about the institutions satisfactory academic progress standards and financial aid appeals process during new student orientation and include student-friendly language on the institutions internet website, course syllabi, and financial aid award letters regarding the standards and appeals process.
(C)Notify a student when the student has not achieved the satisfactory academic progress standards following every term of enrollment, regardless of the frequency at which satisfactory academic progress is formally evaluated.
(D)Evaluate adherence to grade point average and pace of completion standards based only on cumulative measures and not on individual term measures.
(E)Exclude remedial coursework from maximum timeframe calculations if the institution offers remedial coursework.
(F)Allow a student who fulfills the terms and conditions of the students academic plan to remain on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the students academic plan.
(G)Allow a student who changes majors to exclude credits and grades that do not count toward the students new major in the satisfactory academic progress determination.(H)(G)In the case of a satisfactory academic progress determination for a transfer student, when calculating maximum timeframe as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, only include those credits from other institutions that count towards the students current program of study.
(I)(H)Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet satisfactory academic progress, as defined by the institution where the student is enrolled, subject to all of the following:
(i)A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the total number of appeals that may be submitted by a student throughout the duration of the students enrollment. The institution may limit the number of appeals per term, but each appeal that is denied shall be subject to the second review process pursuant to clause (vi). The institution shall not impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term.
(ii)A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment.
(iii)The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process, including the process for a student to file an appeal, information about the second review process for an appeal that is denied as described in clause (vi), and how a student may request a second review.
(iv)In reviewing a students appeal, the institution may consider any additional special circumstances that the institution deems appropriate, and shall consider a broad range of special circumstances, including, but not limited to, any of the following:
(I)Death of a relative or other significant person.
(II)Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person.
(III)Pregnancy or birth of a child.
(IV)Homelessness.
(V)Loss of childcare.
(VI)Loss or change in employment.
(VII)Loss of access to personal or public transportation.
(VIII)Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or civil liability.
(IX)Natural disaster.
(X)Change of major.
(v)The institution shall review a students appeal and notify the student of the appeal decision within 45 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the students appeal is pending.
(vi)The institution shall provide a second review process for an appeal that is denied if requested by the student. The second review shall be conducted by a reviewer who did not participate in the first review.
(vii)The institution shall waive any requirement for third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.
(viii)This subparagraph shall not be interpreted to require institutions to provide retroactive financial aid for a term preceding the term in which a student reenrolls.
(m)Satisfactory academic progress means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations.
The Legislature finds and declares all of the following:
(a)California has made substantial gains in ensuring low-income students receive financial aid at the onset of their academic careers through the expansion of the Cal Grant and California College Promise Grant programs.
(b)In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by Section 1091 of Title 20 of the United States Code and Section 668.34 of Title 34 of the Code of Federal Regulations.
(c)A report released in July 2021, titled The Overlooked Obstacle How Satisfactory Academic Progress Policies Impede Student Success and Equity (The Overlooked Obstacle), found that 24 percent of first-year California Community College students receiving a federal Pell Grant did not meet SAP standards during their first two consecutive academic terms. Black and Native American students were twice as likely as White and Asian students to not meet those standards. Students not meeting SAP standards was also found to be a significant issue at four-year universities.
(d)A 2021 study comparing the characteristics of students who did not meet SAP standards to those who did meet those standards found no difference in the students motivation to attend and succeed in college. However, the students who did not meet those standards had significantly more life responsibilities, such as childcare and employment demands, and fewer resources, including access to food and housing, flexible work schedules, and reliable transportation.
(e)Students who are deemed as not meeting their institutions SAP standards during any two consecutive academic terms or one year of enrollment must have their Cal Grant and federal financial aid terminated unless they successfully appeal that determination.
(f)Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual postsecondary educational institution. Some postsecondary educational institutions that participate in state-funded financial aid programs do not take full advantage of federal flexibility related to grounds for appeal, unnecessarily limiting students ability to maintain financial aid.
(g)The Overlooked Obstacle further revealed that 87 percent of the California Community College students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
SEC. 2.Section 69432.7 of the Education Code is amended to read:69432.7.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, technology, 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) to (4), inclusive, 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 website of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website 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.
(III)Notwithstanding subclause (II), the commission may grant an appeal for the 202324 academic year if the institution failed to meet the three-year cohort default rate solely due to acquisition of an out-of-state institution that impacted its three-year cohort default rate, and the acquired out-of-state institution has since closed any time between the 201920 to 202223 academic years, inclusive. The institutions Cal Grant eligibility shall not be transferrable if the institution is bought or sold during the 202324 fiscal year. This authority shall be in effect for an appeal for the 202324 academic year only and shall sunset on July 1, 2023. The institutions Cal Grant eligibility shall not be transferrable to a new site acquired by the institution.
(4)By the start of the 202425 academic year, the institution shall develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards published in Title 34 of the Code of Federal Regulations. The institution shall also comply with all of the following requirements:
(A)Set the standards for grade point average and pace of completion at the minimum federal standards as determined by Section 668.34(a) of Title 34 of the Code of Federal Regulations.
(B)Provide information to students about the institutions satisfactory academic progress standards and financial aid appeals process during new student orientation and include student-friendly language on the institutions internet website, course syllabi, and financial aid award letters regarding the standards and appeals process.
(C)Notify a student when the student has not achieved the satisfactory academic progress standards following every term of enrollment, regardless of the frequency at which satisfactory academic progress is formally evaluated.
(D)Evaluate adherence to grade point average and pace of completion standards based only on cumulative measures and not on individual term measures.
(E)Exclude remedial coursework from maximum timeframe calculations if the institution offers remedial coursework.
(F)Allow a student who fulfills the terms and conditions of the students academic plan to remain on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the students academic plan.
(G)Allow a student who changes majors to exclude credits and grades that do not count toward the students new major in the satisfactory academic progress determination.
(H)In the case of a satisfactory academic progress determination for a transfer student, when calculating maximum timeframe as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, only include those credits from other institutions that count towards the students current program of study.
(I)Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet satisfactory academic progress, as defined by the institution where the student is enrolled, subject to all of the following:
(i)A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the total number of appeals that may be submitted by a student throughout the duration of the students enrollment. The institution may limit the number of appeals per term, but each appeal that is denied shall be subject to the second review process pursuant to clause (vi). The institution shall not impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term. An appeal decision shall be finalized and communicated to the student by the end of the term in which the appeal was received.
(ii)A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment.
(iii)The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process, including the process for a student to file an appeal, information about the second review process for an appeal that is denied as described in clause (vi), and how a student may request a second review.
(iv)In reviewing a students appeal, the institution may consider any additional special circumstances that the institution deems appropriate, and shall consider a broad range of special circumstances, including, but not limited to, any of the following:
(I)Death of a relative or other significant person.
(II)Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person.
(III)Pregnancy or birth of a child.
(IV)Homelessness.
(V)Loss of childcare.
(VI)Loss or change in employment.
(VII)Loss of access to personal or public transportation.
(VIII)Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or civil liability.
(IX)Natural disaster.
(v)The institution shall review a students appeal and notify the student of the appeal decision within 30 45 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the students appeal is pending.
(vi)The institution shall provide a second review process for an appeal that is denied if requested by the student. The second review shall be conducted by a reviewer who did not participate in the first review.
(vii)The institution shall waive any requirement for third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.
(viii)This subparagraph shall not be interpreted to require institutions to provide retroactive financial aid for a term preceding the term in which a student reenrolls.
(J)On or before January 15, 2026, and each January 15 thereafter, the office of the Chancellor of the California Community Colleges, the office of the Chancellor of the California State University, and, as a condition of participation in the Cal Grant Program, the office of the President of the University of California shall annually report to the Legislature, pursuant to Section 9795 of the Government Code, all of the following information, for the preceding award year, disaggregated by race, ethnicity, gender, and status as a first-generation college student, transfer student, Federal Work-Study Program participant, and current or former foster youth:(i)The number of students who became ineligible to receive financial aid due to the determination that they did not meet satisfactory academic progress.(ii)The number of students who submitted an appeal to have financial aid reinstated.(iii)The number of financial aid appeals that were denied.(iv)The number of financial aid appeals that were approved.(v)A summary of the reasons financial aid appeals were denied.(vi)The number of students on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations.(K)On or before January 31, 2025, the office of the Chancellor of the California Community Colleges, the office of the Chancellor of the California State University, and, as a condition of participation in the Cal Grant Program, the office of the President of the University of California shall report to the Legislature, pursuant to Section 9795 of the Government Code, an update on the status of implementation of this paragraph.(m)Satisfactory academic progress means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations.
The Legislature finds and declares all of the following:
(a)California has made substantial gains in ensuring low-income students receive financial aid at the onset of their academic careers through the expansion of the Cal Grant and California College Promise Grant programs.
(b)In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by Section 1091 of Title 20 of the United States Code and Section 668.34 of Title 34 of the Code of Federal Regulations.
(c)A report released in July 2021, titled The Overlooked Obstacle How Satisfactory Academic Progress Policies Impede Student Success and Equity (The Overlooked Obstacle), found that 24 percent of first-year, first-year California Community College students receiving a federal Pell Grant did not meet SAP standards during their first two consecutive academic terms. Black and Native American students were twice as likely as white White and Asian students to not meet those standards. Students not meeting SAP standards was also found to be a significant issue at four-year universities.
(d)A 2021 study comparing the characteristics of students who did not meet SAP standards to those who did meet those standards found no difference in the students motivation to attend and succeed in college. However, the students who did not meet those standards had significantly more life responsibilities, such as childcare and employment demands, and fewer resources, including access to food and housing, flexible work schedules, and reliable transportation.
(e)Students who are deemed as not meeting their institutions SAP standards during any two consecutive academic terms or one year of enrollment must have their Cal Grant and federal financial aid terminated unless they successfully appeal that determination.
(f)Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual postsecondary educational institution. Some postsecondary educational institutions that participate in state-funded financial aid programs do not take full advantage of federal flexibility related to grounds for appeal, unnecessarily limiting students ability to maintain financial aid.
(g)The Overlooked Obstacle further revealed that 87 percent of the California Community College students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
SEC. 2.Section 69432.7 of the Education Code is amended to read:69432.7.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, technology, 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) to (4), inclusive, 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 website of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website 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.
(III)Notwithstanding subclause (II), the commission may grant an appeal for the 202324 academic year if the institution failed to meet the three-year cohort default rate solely due to acquisition of an out-of-state institution that impacted its three-year cohort default rate, and the acquired out-of-state institution has since closed any time between the 201920 to 202223 academic years, inclusive. The institutions Cal Grant eligibility shall not be transferrable if the institution is bought or sold during the 202324 fiscal year. This authority shall be in effect for an appeal for the 202324 academic year only and shall sunset on July 1, 2023. The institutions Cal Grant eligibility shall not be transferrable to a new site acquired by the institution.
(4)By the start of the 202425 academic year, the institution shall develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards published in Title 34 of the Code of Federal Regulations. The institution shall also comply with all of the following requirements:
(A)Set the standards for grade point average and pace of completion at the minimum federal standards as determined by Section 668.34(a) of Title 34 of the Code of Federal Regulations.
(B)Provide information to students about the institutions satisfactory academic progress standards and financial aid appeals process during new student orientation and include student-friendly language on the institutions internet website, course syllabi, and financial aid award letters regarding the standards and appeals process.
(C)Notify a student when the student has not achieved the satisfactory academic progress standards following every term of enrollment, regardless of the frequency at which satisfactory academic progress is formally evaluated.
(D)Evaluate adherence to grade point average and pace of completion standards based only on cumulative measures and not on individual term measures.
(E)Exclude remedial coursework from maximum timeframe calculations. calculations if the institution offers remedial coursework.
(F)Allow a student who fulfills the terms and conditions of the students academic plan to remain on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the students academic plan.
(G)Allow a student who changes majors to exclude credits and grades that do not count toward the students new major in the satisfactory academic progress determination.
(H)In the case of a satisfactory academic progress determination for a transfer student, when calculating maximum timeframe as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, only include those credits from other institutions that count towards the students current program of study.
(I)Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet satisfactory academic progress, as defined by the institution where the student is enrolled, subject to all of the following:
(i)A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the total number of appeals that may be submitted by a student or throughout the duration of the students enrollment. The institution may limit the number of appeals per term, but each appeal that is denied shall be subject to the second review process pursuant to clause (vi). The institution shall not impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term. An appeal decision shall be finalized and communicated to the student by the end of the term in which the appeal was received.
(ii)A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment.
(iii)The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process. process, including the process for a student to file an appeal, information about the second review process for an appeal that is denied as described in clause (vi), and how a student may request a second review.
(iv)In reviewing a students appeal, the institution may consider any additional special circumstances that the institution deems appropriate, and shall consider a broad range of special circumstances, including, but not limited to, any of the following:
(I)Death of a relative or other significant person.
(II)Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person.
(III)Pregnancy or birth of a child.
(IV)Homelessness.
(V)Loss of childcare.
(VI)Loss or change in employment.
(VII)Loss of access to personal or public transportation.
(VIII)Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or civil liability.
(IX)Natural disaster.
(v)The institution shall review a students appeal and notify the student of the appeal decision within 30 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the students appeal is pending.
(vi)The institution shall offer provide a second review process for an appeal that is denied. denied if requested by the student. The second review shall be conducted by a reviewer who did not participate in the first review.
(vii)The institution shall waive any requirement for third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.
(viii)This subparagraph shall not be interpreted to require institutions to provide retroactive financial aid for a term preceding the term in which a student reenrolls.
(J)On or before January 15, 2026, and each January 15 thereafter, the office of the Chancellor of the California Community Colleges, the office of the Chancellor of the California State University, and, as a condition of participation in the Cal Grant Program, the office of the President of the University of California shall annually report to the Legislature, pursuant to Section 9795 of the Government Code, all of the following information, for the preceding award year, disaggregated by race, ethnicity, gender, and status as a first-generation college student, transfer student, Federal Work-Study Program participant, and current or former foster youth:
(i)The number of students who became ineligible to receive financial aid due to the determination that they did not meet satisfactory academic progress.
(ii)The number of students who submitted an appeal to have financial aid reinstated.
(iii)The number of financial aid appeals that were denied.
(iv)The number of financial aid appeals that were approved.
(v)A summary of the reasons financial aid appeals were denied.
(vi)The number of students on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations.
(K)On or before January 31, 2025, the office of the Chancellor of the California Community Colleges, the office of the Chancellor of the California State University, and, as a condition of participation in the Cal Grant Program, the office of the President of the University of California shall report to the Legislature, pursuant to Section 9795 of the Government Code, an update on the status of implementation of this paragraph.
(m)Satisfactory academic progress means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations.
The Legislature finds and declares all of the following:
(a)California has made substantial gains in ensuring low-income students receive financial aid at the onset of their academic careers through the expansion of the Cal Grant and California College Promise Grant programs.
(b)In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by Section 1091 of Title 20 of the United States Code and Section 668.34 of Title 34 of the Code of Federal Regulations.
(c)A report released in July 2021, titled The Overlooked Obstacle How Satisfactory Academic Progress Policies Impede Student Success and Equity (The Overlooked Obstacle), found that 24 percent of first-year, California Community College students receiving a federal Pell Grant did not meet SAP standards during their first two consecutive academic terms. Black and Native American students were twice as likely as white and Asian students to not meet those standards. Students not meeting SAP standards was also found to be a significant issue at four-year universities.
(d)A 2021 study comparing the characteristics of students who did not meet SAP standards to those who did meet those standards found no difference in the students motivation to attend and succeed in college. However, the students who did not meet those standards had significantly more life responsibilities, such as childcare and employment demands, and fewer resources, including access to food and housing, flexible work schedules, and reliable transportation.
(e)Students who are deemed as not meeting their institutions SAP standards during any two consecutive academic terms or one year of enrollment must have their Cal Grant and federal financial aid terminated unless they successfully appeal that determination.
(f)Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual postsecondary educational institution. Some postsecondary educational institutions that participate in state-funded financial aid programs do not take full advantage of federal flexibility related to grounds for appeal, unnecessarily limiting students ability to maintain financial aid.
(g)The Overlooked Obstacle further revealed that 87 percent of the California Community College students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
SEC. 2.Section 69432.7 of the Education Code is amended to read:69432.7.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, technology, 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) to (4), inclusive, 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 website of a California licensing or regulatory agency. For purposes of this paragraph, provide may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website 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.
(III)Notwithstanding subclause (II), the commission may grant an appeal for the 202324 academic year if the institution failed to meet the three-year cohort default rate solely due to acquisition of an out-of-state institution that impacted its three-year cohort default rate, and the acquired out-of-state institution has since closed any time between the 201920 to 202223 academic years, inclusive. The institutions Cal Grant eligibility shall not be transferrable if the institution is bought or sold during the 202324 fiscal year. This authority shall be in effect for an appeal for the 202324 academic year only and shall sunset on July 1, 2023. The institutions Cal Grant eligibility shall not be transferrable to a new site acquired by the institution.
(4)By the start of the 202425 academic year, the institution shall develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards published in Title 34 of the Code of Federal Regulations. The institution shall also comply with all of the following requirements:
(A)Set the standards for grade point average and pace of completion at the minimum federal standards as determined by Section 668.34(a) of Title 34 of the Code of Federal Regulations.
(B)Provide information to students about the institutions satisfactory academic progress standards and financial aid appeals process during new student orientation and include student-friendly language on the institutions internet website, course syllabi, and financial aid award letters regarding the standards and appeals process.
(C)Notify a student when the student has not achieved the satisfactory academic progress standards following every term of enrollment, regardless of the frequency at which satisfactory academic progress is formally evaluated.
(D)Evaluate adherence to grade point average and pace of completion standards based only on cumulative measures and not on individual term measures.
(E)Exclude remedial coursework from maximum timeframe calculations.
(F)Allow a student who fulfills the terms and conditions of the students academic plan to remain on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the students academic plan.
(G)Allow a student who changes majors to exclude credits and grades that do not count toward the students new major in the satisfactory academic progress determination.
(H)In the case of a satisfactory academic progress determination for a transfer student, when calculating maximum timeframe as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, only include those credits from other institutions that count towards the students current program of study.
(I)Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet satisfactory academic progress, as defined by the institution where the student is enrolled, subject to all of the following:
(i)A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the number of appeals that may be submitted by a student or impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term. An appeal decision shall be finalized and communicated to the student by the end of the term in which the appeal was received.
(ii)A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment.
(iii)The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process.
(iv)In reviewing a students appeal, the institution shall consider a broad range of special circumstances, including, but not limited to, any of the following:
(I)Death of a relative or other significant person.
(II)Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person.
(III)Pregnancy or birth of a child.
(IV)Homelessness.
(V)Loss of childcare.
(VI)Loss or change in employment.
(VII)Loss of access to personal or public transportation.
(VIII)Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or civil liability.
(IX)Natural disaster.
(v)The institution shall review a students appeal and notify the student of the appeal decision within 30 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the students appeal is pending.
(vi)The institution shall offer a second review process for an appeal that is denied.
(vii)The institution shall waive any requirement for third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.
(J)On or before January 15, 2026, and each January 15 thereafter, the office of the Chancellor of the California Community Colleges, the office of the Chancellor of the California State University, and, as a condition of participation in the Cal Grant Program, the office of the President of the University of California shall annually report to the Legislature, pursuant to Section 9795 of the Government Code, all of the following information, for the preceding award year, disaggregated by race, ethnicity, gender, and status as a first-generation college student, transfer student, Federal Work-Study Program participant, and current or former foster youth:
(i)The number of students who became ineligible to receive financial aid due to the determination that they did not meet satisfactory academic progress.
(ii)The number of students who submitted an appeal to have financial aid reinstated.
(iii)The number of financial aid appeals that were denied.
(iv)The number of financial aid appeals that were approved.
(v)A summary of the reasons financial aid appeals were denied.
(vi)The number of students on financial aid probation as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations.
(K)On or before January 31, 2025, the office of the Chancellor of the California Community Colleges, the office of the Chancellor of the California State University, and, as a condition of participation in the Cal Grant Program, the office of the President of the University of California shall report to the Legislature, pursuant to Section 9795 of the Government Code, an update on the status of implementation of this paragraph.
(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. The regulations adopted by the commission under this subdivision shall, to the extent consistent with applicable federal standards, provide that homelessness, as defined as a homeless individual within the meaning of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11302(a)), or as defined as a homeless child or youth, as defined in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)), is an extenuating circumstance for students who are otherwise unable to meet the requirements deemed to constitute satisfactory academic progress at the institution they attend, and that extenuating circumstance may be considered by the institution to alter or excuse compliance with those progress requirements.
|
Date
|
Status
|
|---|---|
| Oct 8, 2023 | Chaptered by Secretary of State - Chapter 544, Statutes of 2023. |
| Oct 8, 2023 | Approved by the Governor. |
| Sep 21, 2023 | Enrolled and presented to the Governor at 3:30 p.m. |
| Sep 14, 2023 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 3549.). |
| Sep 13, 2023 | In Assembly. Concurrence in Senate amendments pending. |
| Sep 13, 2023 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2766.). |
| Sep 8, 2023 | Ordered to special consent calendar. |
| Sep 5, 2023 | Read second time. Ordered to third reading. |
| Sep 1, 2023 | Read second time and amended. Ordered returned to second reading. |
| Sep 1, 2023 | From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (September 1). |
| Jul 10, 2023 | In committee: Referred to APPR. suspense file. |
| Jun 22, 2023 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 21, 2023 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 21). |
| Jun 8, 2023 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on ED. |
| Jun 7, 2023 | Referred to Com. on ED. |
| May 31, 2023 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 30, 2023 | Read third time. Passed. Ordered to the Senate. (Ayes 80. Noes 0. Page 1915.) |
| May 22, 2023 | Read second time. Ordered to third reading. |
| May 18, 2023 | Read second time and amended. Ordered returned to second reading. |
| May 18, 2023 | From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (May 18). |
| May 3, 2023 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 24, 2023 | Re-referred to Com. on APPR. |
| Apr 20, 2023 | Read second time and amended. |
| Apr 19, 2023 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (April 18). |
| Apr 11, 2023 | In committee: Hearing postponed by committee. |
| Feb 23, 2023 | Referred to Com. on HIGHER ED. |
| Feb 14, 2023 | From printer. May be heard in committee March 16. |
| Feb 13, 2023 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 14, 2023 | AB 789 Berman Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 13, 2023 | Special Consent AB789 Berman et al. By Skinner | Senate Floor |
Passed |
|
| Sep 1, 2023 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 10, 2023 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 21, 2023 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Education |
Passed |
|
| May 30, 2023 | AB 789 Berman Assembly Third Reading | Assembly Floor |
Passed |
|
| May 18, 2023 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 18, 2023 | Do pass as amended 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
|
|---|---|---|
| 3rd Street Youth Center & Clinic | ** Support | |
| A Better Way, INC. - Permanency Program | ** Support | |
| AGS | * Support | Apr 18, 2023 |
| AGS | * Support | Apr 18, 2023 |
| Alliance for A Better Community | ** Support | |
| American Association Of University Women - California | ** Support | |
| Asian Americans Advancing Justice Southern California | ** Support | |
| Associate Students of UCI | * Support | Apr 18, 2023 |
| Associated Students Ucla | * Support | Apr 18, 2023 |
| Association California Community Colleges | * Support | Apr 18, 2023 |
| Association of Independent California Colleges and Universities | * Neutral | Apr 18, 2023 |
| ASUCI | * Support | Apr 18, 2023 |
| Bakersfield College NextUp Program | ** Support | |
| Barstow Community College | ** Support | |
| Beyond Emancipation | ** Support | |
| Building Skills Partnership | ** Support | |
| Butte College Inspiring Scholars | ** Support | |
| CA African American Chamber of Commerce | ** Support | |
| California African American Chamber Of Commerce | ** Support | |
| California Alliance of Caregivers | ** Support | |
| California Association Of Orthodontists | ** Support | |
| California Community College Independence | * Support | Apr 18, 2023 |
| California Competes: Higher Education for a Strong Economy | ** Support | |
| California EDGE Coalition | ** Support | |
| California State Student Association | ** Support | |
| California State University, Dominguez Hills - Toro Guardian Scholars Program | ** Support | |
| Camino Nuevo Charter Academy | ** Support | |
| Campaign For College Opportunity | ** Support | |
| Center For Public Interest LawChildrenS Advocacy InstituteUniversity Of San Diego | ** Support | |
| Cerritos College | * Support | Apr 18, 2023 |
| Children Now | ** Support | |
| Children's Legal Services of San Diego | ** Support | |
| Citrus College | ** Support | |
| College Access Plan | ** Support | |
| Community Coalition | ** Support | |
| Congregations Organized for Prophetic Engagement | ** Support | |
| Consejo de Federaciones Mexicanas | ** Support | |
| Creative Alternatives - Transitional Housing Program | ** Support | |
| Cuesta College - Financial Aid | ** Support | |
| Doing Good Works | ** Support | |
| Dolphin Guardian Scholars Program - CSU Channel Island | ** Support | |
| Ea Family Services | ** Support | |
| Education Trust West | * Support | Jun 21, 2023 |
| El Monte Promise Foundation | ** Support | |
| Empowering Pacific Islander Communities | ** Support | |
| Faculty Association Of California Community Colleges | ** Support | |
| Families In Schools | ** Support | |
| First Place for Youth | ** Support | |
| Foster Care Counts | ** Support | |
| Fulfillment Fund | ** Support | |
| Generation Up | ** Support | |
| Glendale Community College | * Support | Jun 21, 2023 |
| Glendale Community College - Student Financial Aid | ** Support | |
| Glendale Community College District | ** Support | |
| Go Public Schools | ** Support | |
| Haven Of Hope | ** Support | |
| heart of los angeles | ** Support | |
| Housing Authority of City of Santa Paula | ** Support | |
| Immigrants Rising | ** Support | |
| InnerCity Struggle | ** Support | |
| John Burton Advocates for Youth | ** Support | |
| Jovenes, Inc. | ** Support | |
| Kid City Hope Place | ** Support | |
| Let’s Go to College California | ** Support | |
| Los Angeles Unified School District | ** Support | |
| Los Angeles United Methodist Foundation | ** Support | |
| Mary Graham Children's Foundation | ** Support | |
| Merced County - Children's Services Branch | ** Support | |
| Merced County Human Services Agency | ** Support | |
| Motivating Our Students Through Experience | ** Support | |
| Mt. San Antonio College | ** Support | |
| National Association Of Social Workers, California Chapter | ** Support | |
| NextGen California | ** Support | |
| Norco College - Special Funded Programs | ** Support | |
| North Orange Community College District | ** Support | |
| Northern California College Promise Coalition | ** Support | |
| Operation Jump Start | ** Support | |
| Orange County Business Council | ** Support | |
| Our Voice: Communities for Quality Education | ** Support | |
| Partnership for Los Angeles Schools | ** Support | |
| Pivotal | ** Support | |
| Power To Soar | ** Support | |
| Prevail | ** Support | |
| Project Soar | ** Support | |
| Public Advocates | ** Support | |
| Puente Learning Center | ** Support | |
| Reading and Beyond | ** Support | |
| Reedley College - EOPS | ** Support | |
| Rio Hondo College | ** Support | |
| San Benito County - Health & Human Services | ** Support | |
| San Francisco Rising | ** Support | |
| San Jose-Evergreen Community College District | ** Support | |
| Sanctuary of Hope | ** Support | |
| Shasta College - Inspiring & Fostering Independence | ** Support | |
| Southern California College Access Network | ** Support | |
| Southern California College Attainment Network | * Support | Jun 21, 2023 |
| Student Senate for California Community Colleges | ** Support | |
| Sycamores | ** Support | |
| Television Academy Foundation | ** Support | |
| The Institute for College Access & Success | ** Support | |
| TLC Child & Family Services - Transition Age Youth Housing | ** Support | |
| Together We Rise Dba Foster Love | ** Support | |
| Transformative Action Institute | ** Support | |
| uAspire | ** Support | |
| UC Davis | * Support | Apr 18, 2023 |
| UC Irvine | * Support | Apr 18, 2023 |
| UC Santa Cruz | * Support | Jun 21, 2023 |
| UCLA Student Body | * Support | Apr 18, 2023 |
| Undergraduate Student Association | * Support | Apr 18, 2023 |
| Unite-LA | ** Support | |
| United Friends Of The Children | ** Support | |
| University of California | * Neutral | Apr 18, 2023 |
| University Of California Student Association | ** Support | |
| VALLEY INDUSTRY AND COMMERCE ASSOCIATION | ** Support | |
| Voices | ** Support | |
| Voices - Solano | ** Support | |
| Waking the Village | ** Support | |
| Walden Family Services | ** Support | |
| Woodland Community College Foster & Kinship Care Education | ** Support | |
| Young Invincibles | ** Support | |
| Youth Law Center | ** Support | |
| Youth Leadership Institute | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 789
Author:(Berman and Cervantes)
As Amended Ver:September 1, 2023
Majority vote
SUMMARY
Requires, as part of the criteria to be deemed a qualifying institution of higher education (IHE) under the Cal Grant Program, an IHE, by the 2024–25 academic year, to comply with various requirements regarding "satisfactory academic progress" (SAP) standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining SAP in a manner that is consistent with the federal standards.
Senate Amendments
- Provide that IHEs shall evaluate whether a student satisfies the grade point average (GPA) and pace of completion standards based on cumulative measures, not for each individual term, as specified.
- Require that IHEs request that faculty include student-friendly language on course syllabi regarding the SAP standards and appeals process.
- Make clarifying and technical amendments.
COMMENTS
The SAP. Currently, the U.S. Department of Education requires academic institutions receiving federal financial aid funds to establish a "reasonable SAP policy," and many state programs, including the Cal Grant, are linked to these same standards. [Students who do not meet SAP standards for two consecutive terms or one academic year are disqualified from receiving financial aid unless they successfully appeal to have aid reinstated.] Yet, many institutions of higher education in California have SAP policies that impose stricter standards than federally required, and unclear appeal processes that result in inconsistent treatment of students. This negatively impacts students' ability to both meet their institutions' SAP policies and successfully appeal to maintain financial aid.
The John Burton Advocates for Youth (JBAY) released a report in July 2021, titled "The Overlooked Obstacle – How Satisfactory Academic Progress Policies Impede Student Success and Equity," found that Black and Native American students were twice as likely as white and Asian students to not meet SAP standards. As a result, the data shows that sizeable numbers of underrepresented students lose access to financial aid due to SAP standards and it is these already underrepresented students who are unlikely to return and achieve their higher education dreams. The report also revealed that 87% of the California community college students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
Further, a 2022 report from the RP Group, The African American Transfer Tipping Point: Identifying the Factors That Impact Transfer among African American/Black Community College Students, found that for African American/Black community college students, being on academic probation was associated with a 70% reduction in the likelihood of graduation.[1]
The author states that, "given the enormous impact of financial aid receipt on college enrollment and retention, the changes in AB 789 are important steps in narrowing graduation gaps and inequities among low-income students and students of color."
Recent legislative efforts to reform SAP. During the 116th Congress (2019-2020), Senator Cory Booker introduced S. 5033, the Satisfactory Academic Progress Reset and Reform Act. The Act, in part, seeks to revise SAP requirements for federal student-aid programs, including by allowing a student who has not been enrolled in an IHE for two years to regain eligibility for federal student aid. The Act cited Congressional findings, including, but not limited to the following:
- The SAP requirements for Federal student aid programs have become increasingly strict and inflexible for students over the last 40 years;
- The increase in SAP requirements has made need-based Federal Pell Grant resemble a performance-based scholarship, despite the disproportionately negative impact on students and families who are low-income;
- Approximately 40% of first-year Federal Pell Grant recipients risk losing Federal student aid due to not meeting the credit completion component of SAP requirements;
- Many IHEs conduct an SAP status check every payment period, allowing students to benefit from a one-term "warning status" before losing Federal student aid or filing an appeal; however, students at IHEs that only evaluate SAP status once per year are at risk of losing their Federal student aid immediately upon learning of their status; and,
- Current SAP policy disproportionately harms Black, Latinx, and Native American students. In 2015 through 2016, 57% of Black students, 47% of Latinx students, and 51% of Native American students relied on Federal Pell Grants to pay for college, while for that same year, 39% of all undergraduate students received a Federal Pell Grant.
The Act was referred to the Senate Committee on Health, Education, Labor, and Pensions; however, the Act was not heard before the 116th Congressional Session adjourned.
According to the Author
"For college and university students, access to financial aid is key to improving academic outcomes as well as addressing racial inequities and basic needs insecurity."
The author contends that, "while much attention has been paid to the need to expand financial aid access at the beginning of a student's academic career, very little attention is given to whether students are subsequently able to maintain financial aid once enrolled. In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by federal regulations, such as a minimum Grade Point Average, a maximum timeframe for completion, and a minimum course completion rate."
Further, the author states, "despite the critical role played by financial aid in college achievement, data shows that sizeable numbers of underrepresented students lose access to financial aid due to SAP standards and it is these already marginalized students who are unlikely to return and achieve their higher education dreams."
Pursuant to the author, "AB 789 would remove barriers that limit students' ability to keep their financial aid. It would do this by establishing a common set of standards for SAP, including the appeals process, to ensure that all California students, regardless of the postsecondary educational institution they attend, are provided with the flexibility already allowed under federal law."
Arguments in Support
According to the JBAY (sponsor) and uAspire (Co-Sponsor) of this measure, "The U.S. Department of Education requires academic institutions receiving federal financial aid funds to establish a 'reasonable satisfactory academic progress (SAP) policy,' and many state programs, including the Cal Grant, are linked to these same standards. Students who do not meet SAP standards for two consecutive terms or one academic year are disqualified from receiving financial aid unless they successfully appeal to have aid reinstated. Yet, many institutions of higher education in California have SAP policies that impose stricter standards than federally required and unclear appeal processes that result in inconsistent treatment of students. This negatively impacts students' ability to both meet their institutions' SAP policies and successfully appeal to maintain financial aid."
Further, "AB 789 will also create a pathway for students who have disenrolled while on SAP disqualification to regain aid upon re-enrollment. Given the enormous impact of financial aid receipt on college enrollment and retention, these changes are important steps in narrowing graduation gaps among low-income students and students of color as well as supporting California's goal of increasing enrollment numbers across the state's postsecondary institutions."
Arguments in Opposition
According to the Californians for Equal Rights Foundation, "by taking away the authority of the State Student Aid Commission to regulate aid recipients' satisfactory academic progress, AB 789 amounts to another legislative attempt to assault academic standards and merit. Specifically, AB 789 would change the long-standing requirement by the Cal Grant Program for a student recipient to make satisfactory academic progress at a qualifying institution. State policy makers should encourage excellence through best practices and healthy competition among students."
FISCAL COMMENTS
According to the Senate Appropriations Committee:
- The California Student Aid Commission (CSAC) estimates additional General Fund costs, likely between $3.0 million and $9.5 million each year, to provide Cal Grant financial aid to students who would have lost their Cal Grant eligibility under an IHE's existing SAP rules and appeals process.
- The Chancellor's Office estimates one-time Proposition 98 General Fund costs of between $135,000 and $329,000 statewide for community college campuses to update, implement, and administer policies regarding SAP calculations. To the extent that some campuses are already implementing these calculations, these costs could be lower. There could also be ongoing Proposition 98 General Fund costs of between $195,000 and $460,000 statewide for the colleges to develop, implement, and administer new policies and procedures regarding SAP and the financial aid appeals process. Additionally, the Chancellor's Office estimates ongoing Proposition 98 General Fund costs of $1.8 million for colleges to provide professional development, training, and release time to financial aid staff regarding the new SAP procedures and practices. To the extent that colleges need to hire new staff to implement these practices, the bill's costs could be higher.
- The Chancellor's Office estimates one-time General Fund costs of $13,000 to $55,000 to provide technical assistance to the colleges and issue guidance regarding the new SAP changes.
- The University of California (UC) and California State University (CSU) may incur minor, one-time costs for their campuses to make changes to SAP practices.
VOTES:
ASM HIGHER EDUCATION: 12-0-0
YES: Mike Fong, Ta, Addis, Arambula, Gabriel, Irwin, Low, Ortega, Sanchez, Santiago, Wallis, Weber
ASM APPROPRIATIONS: 11-0-5
YES: Holden, Bryan, Calderon, Wendy Carrillo, Mike Fong, Hart, Lowenthal, Papan, Pellerin, Weber, Ortega
ABS, ABST OR NV: Megan Dahle, Dixon, Mathis, Robert Rivas, Sanchez
ASSEMBLY FLOOR: 80-0-0
YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones‑Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
SENATE FLOOR: 39-0-1
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ABS, ABST OR NV: Caballero
UPDATED
VERSION: September 1, 2023
CONSULTANT: Jeanice Warden / HIGHER ED. / (916) 319-3960 FN: 0002337
RP Group, The African American Transfer Tipping Point: Identifying the Factors That Impact Transfer among African American/Black Community College Students, 2022. https://rpgroup.org/Portals/0/Documents/Projects/African_American_Transfer_Tipping_Point-(AATTP)-Study/AATTP_Brief1_Fall2022.pdf ↑
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 789 |
THIRD READING
Bill No: AB 789
Author: Berman (D) and Cervantes (D), et al.
Amended: 9/1/23 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE: 7-0, 6/21/23
AYES: Newman, Ochoa Bogh, Cortese, Glazer, McGuire, Smallwood-Cuevas, Wilk
SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23
AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener
ASSEMBLY FLOOR: 80-0, 5/30/23 - See last page for vote
SUBJECT: Student financial aid: Cal Grants: satisfactory academic progress
SOURCE: California State Student Association
John Burton Advocates for Youth
NextGen California
Southern California College Access Network
Student Senate California Community Colleges
The Institute for College Access & Success
uAspire
Unite- LA
University of California Student Association
DIGEST:
This bill requires, as part of the criteria to be deemed a qualifying institution of higher education (IHE) under the Cal Grant Program, an IHE, by the 2024–25 academic year, to comply with various requirements regarding “satisfactory academic progress” (SAP) standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining SAP in a manner that is consistent with the federal standards.
ANALYSIS:
Existing federal law:
- Stipulates that an IHE must establish a reasonable SAP policy for determining whether an otherwise eligible student is making SAP in their educational program and may receive assistance under the Title IV, Higher Education Act (HEA) programs [these are the federal financial aid programs]. The IHE policies are deemed to be reasonable if they follow a prescribed set of standards. See the Senate Education Committee analysis for more details.
- Stipulates various definitions that apply to the terms of SAP including:
- “Maximum timeframe means:”
- For an undergraduate program measured in credit hours, a period that is no longer than 150 percent of the published length of the educational program, as measured in credit hours, or expressed in calendar time.
- For an undergraduate program measured in clock hours, a period that is no longer than 150 percent of the published length of the educational program, as measured by the cumulative number of clock hours the student is required to complete and expressed in calendar time.
- For a graduate program, a period defined by the IHE that is based on the length of the educational program.
- “Maximum timeframe means:”
- Stipulates that a student on financial aid probation for a payment period may not receive Title IV, HEA program funds for the subsequent payment period unless the student makes SAP or the IHE determines that the student met the requirements specified by the IHE in the academic plan for the student. (34 CFR 668.34)
Existing state law:
- Establishes the Cal Grant program, administered by the California Student Aid Commission, to provide grants to financially needy students to attend a college or university. (EC § 69430 – 69433 and Sections 69465 - 69470)
- Requires a “qualifying institution”, i.e. an institution able to enroll Cal Grant recipients, to:
- Meet federal financial aid standards.
- Maintain a student loan default rate below 15.5 percent and a graduation rate above 20 percent. (IHEs with 40 percent or less of undergraduates borrowing federal student loans are exempt from these requirements.)
- Report enrollment, persistence, and graduation data for all students and Cal Grant recipients as well as job placement and earnings data for occupational programs. (EC§ 69432.7.)
This bill:
- In order to be deemed a qualifying IHE for purposes of Cal Grant eligibility, by the 2024-25 academic year, requires IHEs develop and implement policies defining SAP in a manner that is consistent with the federal standards and requires that IHE also comply with all of the following requirements:
- Set the standards for GPA and pace of completion at the minimum federal standards as determined by existing federal regulations.
- Provide information to students about the IHE’s SAP standards and financial aid appeals process, as specified.
- Notify a student when the student has not achieved the SAP standards following every term of enrollment, regardless of the frequency at which SAP is formally evaluated. This bill provides that institutions is not precluded from conducting an annual formal evaluation.
- Evaluate whether a student satisfies the grade point average and pace of completion standards based on cumulative measures, as specified and prohibits an institution from requiring a student to satisfy the minimum grade point average and pace of completion standards for each individual term. This bill further provides that an institution is not precluded from requiring a student on “financial aid probation” as defined in federal regulations to comply with the terms of the student’s academic plan in order to maintain financial aid eligibility
- Exclude remedial coursework from maximum timeframe calculations if the IHE offers remedial coursework.
- Allow a student who fulfills the terms and conditions of the student’s academic plan to remain on “financial aid probation” as defined in federal regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the student’s academic plan.
- Allow a student who changes majors to exclude credits and grades that do not count toward the student’s new major in the SAP determination.
- For a transfer student, when calculating maximum timeframe as defined in federal regulations, only include those credits from other IHEs that count towards the students current program of study.
- Accept financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student failed to meet SAP where the student is enrolled, subject to a number of specified conditions including allowing a student to submit an unlimited number of appeals.
- Deletes the commission’s authorization to adopt regulations defining SAP.
- Makes various finding and declarations relating obstacles faced by students who fail to meet SAP standards.
Comments
- Need for the bill. According to the author, “For college and university students, access to financial aid is key to improving academic outcomes as well as addressing racial inequities and basic needs insecurity. While much attention has been paid to the need to expand financial aid access at the beginning of a student’s academic career, very little attention is given to whether students are subsequently able to maintain financial aid once enrolled. In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by federal regulations, such as a minimum Grade Point Average, a maximum timeframe for completion, and a minimum course completion rate. Despite the critical role played by financial aid in college achievement, data shows that sizeable numbers of underrepresented students lose access to financial aid due to SAP standards and it is these already marginalized students who are unlikely to return and achieve their higher education dreams. AB 789 would remove barriers that limit students’ ability to keep their financial aid. It would do this by establishing a common set of standards for SAP, including the appeals process, to ensure that all California students, regardless of the postsecondary educational institution they attend, are provided with the flexibility already allowed under federal law.”
- Satisfactory Academic Progress. SAP is a standard that students must meet to receive state and federal financial aid. Federal aid regulations require that all IHEs receiving federal aid have a reasonable SAP policy that specifies what is required of students to maintain financial aid eligibility. Federal regulations offer a great deal of flexibility to IHEs regarding what factors they deem to be a special circumstance for student that would trigger the appeal process. This bill further restricts how IHE’s implement federal requirements.
- What happens when a student fails to meet SAP? State statutes rely on the federal definition of SAP. A student who fails to meet SAP standards could lose eligibility for financial aid. For example, maintaining SAP is a condition for Cal Grant renewal. However, should they fall short, a student may appeal the determination on the basis of injury or illness, death, or other special circumstances, per the IHE’s appeals policy. A student may remain on aid despite not meeting standards with a successful appeal. Staff notes that in response to the COVID-19 crisis, the federal CARES Act provides additional flexibilities to IHEs regarding the calculation of SAP, which, in turn, softens standards for students who experience disruptions caused by the crisis. An IHE, without requiring an appeal from a student, may now exclude from an SAP calculation credits that were attempted but not completed.
This bill would codify a common set of standards for the SAP of students attending IHE. These standards seem to be permitted under federal regulations but not required. This measure seeks to help students who are struggling academically maintain their financial aid eligibility and afford students the full flexible allowed under federal regulations.
- Establishes requirements for appeals policy. Under federal regulations, there are no requirements related to how the appeals policy is to be structured. This bill attempts to fill that gap by establishing requirements for how an IHE is to communicate its SAP standards and appeals process to students, specifies criteria for handling SAP appeals, and ensures a student with a prior SAP disqualification has the opportunity to regain access to financial aid.
- Consequences for failing to comply. Existing law establishes institutional eligibility criteria for participation in the Cal Grant program, including maintaining a specific student loan default rate limit and reporting enrollment, persistence, and graduation data for Cal Grant recipients. These standards were established to address concerns that state funds may be encouraging some students to attend poorly performing schools. This bill introduces new standards for IHEs to maintain Cal Grant eligibility relating to administrative procedures that affect a student’s ability to maintain financial aid eligibility. Failure to comply could result in the disqualification of the IHE from the Cal Grant program. If this occurs, students will be unable to use their Cal Grant award at that IHE. The policy's underlying assumption is that IHE can and will make an effort to maintain eligibility because there is greater incentive to participate in the state’s largest student aid program. Any addition to these eligibility standards for colleges participating in Cal Grant programs should be carefully considered to ensure that they warrant the use of the enforcement mechanism for noncompliance.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committeet:
- The California Student Aid Commission (CSAC) estimates additional General Fund costs, likely between $3.0 million and $9.5 million each year, to provide Cal Grant financial aid to students who would have lost their Cal Grant eligibility under an IHE’s existing SAP rules and appeals process.
- The Chancellor’s Office estimates one-time Proposition 98 General Fund costs of between $135,000 and $329,000 statewide for community college campuses to update, implement, and administer policies regarding SAP calculations. To the extent that some campuses are already implementing these calculations, these costs could be lower. There could also be ongoing Proposition 98 General Fund costs of between $195,000 and $460,000 statewide for the colleges to develop, implement, and administer new policies and procedures regarding SAP and the financial aid appeals process. Additionally, the Chancellor’s Office estimates ongoing Proposition 98 General Fund costs of $1.8 million for colleges to provide professional development, training, and release time to financial aid staff regarding the new SAP procedures and practices. To the extent that colleges need to hire new staff to implement these practices, the bill’s costs could be higher.
- The Chancellor’s Office estimates one-time General Fund costs of $13,000 to $55,000 to provide technical assistance to the colleges and issue guidance regarding the new SAP changes.
- The UC and CSU may incur minor, one-time costs for their campuses to make changes to SAP practices.
SUPPORT: (Verified 9/2/23)
California State Student Association (co-source)
John Burton Advocates for Youth (co-source)
NextGen California (co-source)
Southern California College Access Network (co-source)
Student Senate for California Community Colleges (co-source)
The Institute for College Access & Success (co-source))
uAspire (co-source)
Unite-LA (co-source)
University of California Student Association (co-source)
3rd Street Youth Center & Clinic
Alliance for A Better Community
American Association of University Women - California
Asian Americans Advancing Justice-Southern California
Bakersfield College NextUp Program
Beyond Emancipation
Building Skills Partnership
Butte College Inspiring Scholars
CA African American Chamber of Commerce
California African American Chamber of Commerce
California Alliance of Caregivers
California Association of Orthodontists
California Competes: Higher Education for A Strong Economy
California Edge Coalition
Camino Nuevo Charter Academy
Campaign for College Opportunity
Children Now
College Access Plan
Community Coalition
Congregations Organized for Prophetic Engagement
Consejo De Federaciones Mexicanas
Doing Good Works
EA Family Services
El Monte Promise Foundation
Empowering Pacific Islander Communities
Faculty Association of California Community Colleges
Families in Schools
First Place for Youth
Fulfillment Fund
Generation Up
Glendale Community College - Student Financial Aid
GO Public Schools
Heart of Los Angeles
Housing Authority of City of Santa Paula
Immigrants Rising
Innercity Struggle
Let’s Go to College California
Los Angeles Unified School District
Los Angeles United Methodist Foundation
Merced County Human Services Agency
Motivating Our Students Through Experience
National Association of Social Workers, California Chapter
Norco College - Special Funded Programs
Northern California College Promise Coalition
Operation Jump Start
Orange County Business Council
Our Voice: Communities for Quality Education
Partnership for Los Angeles Schools
Pivotal
Project Soar
Public Advocates
Puente Learning Center
Reading and Beyond
Rio Hondo College
San Francisco Rising
San Jose-Evergreen Community College District
Sanctuary of Hope
Television Academy Foundation
Transformative Action Institute
United Friends of the Children
Valley Industry and Commerce Association
Voices
Young Invincibles
Youth Law Center
Youth Leadership Institute
OPPOSITION: (Verified 9/2/23)
None received
ASSEMBLY FLOOR: 80-0, 5/30/23
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
Prepared by: Olgalilia Ramirez / ED. / (916) 651-4105
9/4/23 11:33:15
**** END ****
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
AB 789 (Berman) - Student financial aid: Cal Grants: satisfactory academic progress
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
This bill requires, as part of the criteria to be deemed a qualifying institution of higher education (IHE) under the Cal Grant Program, an IHE, by the 2024–25 academic year, to comply with various requirements regarding “satisfactory academic progress” (SAP) standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining SAP in a manner that is consistent with the federal standards.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on September 1, 2023
Fiscal Impact:
- The California Student Aid Commission (CSAC) estimates additional General Fund costs, likely between $3.0 million and $9.5 million each year, to provide Cal Grant financial aid to students who would have lost their Cal Grant eligibility under an IHE’s existing SAP rules and appeals process.
- The Chancellor’s Office estimates one-time Proposition 98 General Fund costs of between $135,000 and $329,000 statewide for community college campuses to update, implement, and administer policies regarding SAP calculations. To the extent that some campuses are already implementing these calculations, these costs could be lower. There could also be ongoing Proposition 98 General Fund costs of between $195,000 and $460,000 statewide for the colleges to develop, implement, and administer new policies and procedures regarding SAP and the financial aid appeals process. Additionally, the Chancellor’s Office estimates ongoing Proposition 98 General Fund costs of $1.8 million for colleges to provide professional development, training, and release time to financial aid staff regarding the new SAP procedures and practices. To the extent that colleges need to hire new staff to implement these practices, the bill’s costs could be higher.
- The Chancellor’s Office estimates one-time General Fund costs of $13,000 to $55,000 to provide technical assistance to the colleges and issue guidance regarding the new SAP changes.
- The UC and CSU may incur minor, one-time costs for their campuses to make changes to SAP practices.
Author Amendments:
Provide that institutions shall evaluate whether a student satisfies the grade point average and pace of completion standards based on cumulative measures, not for each individual term, as specified.
-- END --
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
AB 789 (Berman) - Student financial aid: Cal Grants: satisfactory academic progress
Version: June 22, 2023 | Policy Vote: ED. 7 - 0 |
Urgency: No | Mandate: No |
Hearing Date: July 10, 2023 | Consultant: Lenin Del Castillo |
Bill Summary:
This bill requires, as part of the criteria to be deemed a qualifying institution of higher education (IHE) under the Cal Grant Program, an IHE, by the 2024–25 academic year, to comply with various requirements regarding “satisfactory academic progress” (SAP) standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining SAP in a manner that is consistent with the federal standards.
Fiscal Impact:
- The California Student Aid Commission (CSAC) estimates additional General Fund costs, likely between $3.0 million and $9.5 million each year, to provide Cal Grant financial aid to students who would have lost their Cal Grant eligibility under an IHE’s existing SAP rules and appeals process.
- The Chancellor’s Office estimates one-time Proposition 98 General Fund costs of between $135,000 and $329,000 statewide for community college campuses to update, implement, and administer policies regarding SAP calculations. To the extent that some campuses are already implementing these calculations, these costs could be lower. There could also be ongoing Proposition 98 General Fund costs of between $195,000 and $460,000 statewide for the colleges to develop, implement, and administer new policies and procedures regarding SAP and the financial aid appeals process. Additionally, the Chancellor’s Office estimates ongoing Proposition 98 General Fund costs of $1.8 million for colleges to provide professional development, training, and release time to financial aid staff regarding the new SAP procedures and practices. To the extent that colleges need to hire new staff to implement these practices, the bill’s costs could be higher.
- The Chancellor’s Office estimates one-time General Fund costs of $13,000 to $55,000 to provide technical assistance to the colleges and issue guidance regarding the new SAP changes.
- The UC and CSU may incur minor, one-time costs for their campuses to make changes to SAP practices and fulfill the reporting requirement. Additionally, there could be ongoing General Fund costs, potentially in the low millions of dollars statewide, to collect, evaluate, and report specified data regarding SAP.
Background:
Existing law establishes the Cal Grant program, administered by CSAC, 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 programs consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs; eligibility, in part, is based upon financial need, GPA, California residency, and maintaining SAP, as specified. Defines SAP as the criteria required by applicable federal standards. Maximum Cal Grant award amounts for California State University (CSU) and University of California (UC) are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. Supplemental Cal Grant awards programs are available to students with dependent child(ren) and former and current foster youth attending CSU, UC, or a California Community Colleges (CCC) to assist with non-tuition costs such as living expenses.
Existing law requires a “qualifying institution”, i.e. an institution able to enroll Cal Grant recipients, to: meet federal financial aid standards; maintain a student loan default rate below 15.5 percent and a graduation rate above 20 percent. (IHEs with 40 percent or less of undergraduates borrowing federal student loans are exempt from these requirements); and report enrollment, persistence, and graduation data for all students and Cal Grant recipients as well as job placement and earnings data for occupational programs.
Proposed Law:
This bill, in order to be deemed a qualifying IHE for purposes of Cal Grant eligibility, by the 2024-25 academic year, requires them to develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards. Specifically, this bill requires that IHEs comply with the following:
- Set the standards for GPA and pace of completion at the minimum federal standards as determined by existing federal regulations.
- Provide information to students about the IHE’s SAP standards and financial aid appeals process during new student orientation and include student-friendly language on the institution’s internet website, course syllabi, and financial aid award letters regarding the standards and appeals process.
- Notify a student when the student has not achieved the SAP standards following every term of enrollment, regardless of the frequency at which SAP is formally evaluated.
- Evaluate adherence to GPA and pace of completion standards based only on cumulative measures and not on individual term measures.
- Exclude remedial coursework from maximum timeframe calculations if the IHE offers remedial coursework.
- Allow a student who fulfills the terms and conditions of the student’s academic plan to remain on “financial aid probation” as defined by federal regulation, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the student’s academic plan.
- Allow a student who changes majors to exclude credits and grades that do not count toward the student’s new major in the SAP determination.
- In the case of SAP determination for a transfer student, when calculating maximum timeframe as defined in federal regulations, only include those credits from other IHEs that count towards the students current program of study.
- Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet SAP where the student is enrolled, as specified.
This bill deletes the Commission’s authorization to adopt regulations defining SAP.
Staff Comments:
State statutes rely on the federal definition of SAP. A student who fails to meet SAP standards could lose eligibility for financial aid. For example, maintaining SAP is a condition for Cal Grant renewal. However, should they fall short, a student may appeal the determination on the basis of injury or illness, death, or other special circumstances, per the IHE’s appeals policy. A student may remain on aid despite not meeting standards with a successful appeal. This bill would codify a common set of standards for the SAP of students attending IHEs. These standards appear to be permitted under federal regulations but not required.
-- END --
SENATE COMMITTEE ON EDUCATION
Senator Josh Newman, Chair
2023 - 2024 Regular
Bill No: AB 789 Hearing Date: June 21, 2023
Author: | |||
Version: | June 8, 2023 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Olgalilia Ramirez | ||
Subject: Student financial aid: Cal Grants: satisfactory academic progress
SUMMARY
This bill requires, as part of the criteria to be deemed a qualifying institution of higher education (IHE) under the Cal Grant Program, an IHE, by the 2024–25 academic year, to comply with various requirements regarding “satisfactory academic progress” (SAP) standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining SAP in a manner that is consistent with the federal standards.
BACKGROUND
Existing law:
Federal law
1) Stipulates that an IHE must establish a reasonable SAP policy for determining
whether an otherwise eligible student is making SAP in their educational program and may receive assistance under the Title IV, Higher Education Act (HEA) programs [these are the federal financial aid programs]. The IHE policies are deemed to be reasonable if, in part:
- The policy is at least as strict as the policy the IHE applies to a student who is not receiving assistance under the Title IV, HEA programs.
- The policy provides for consistent application of standards to all students within categories of students, e.g., full-time, part-time, undergraduate, and graduate students, and educational programs established by the IHE.
c) The policy provides that a student's academic progress is evaluated:
- At the end of each payment period if the educational program is either one academic year in length or shorter than an academic year.
ii) For all other educational programs, at the end of each payment period or at least annually to correspond with the end of a payment period.
d) The policy specifies the grade point average (GPA) that a student must achieve at each evaluation, or if a GPA is not an appropriate qualitative measure, a comparable assessment measured against a norm; if a student is enrolled in an educational program of more than two academic years, the policy specifies that at the end of the second academic year, the student must have a GPA of at least a “C” or its equivalent, or have academic standing consistent with the IHE's requirements for graduation.
e) The policy describes how a student's GPA and pace of completion are affected by course incompletes, withdrawals, or repetitions, or transfers of credit from other IHEs. Credit hours from another IHE that are accepted toward the student's educational program must count as both attempted and completed hours.
f) If the IHE places students on financial aid warning, or on financial aid probation, as, the policy describes these statuses and that:
i) A student on financial aid warning may continue to receive assistance under the Title IV, HEA programs for one payment period despite a determination that the student is not making SAP. Financial aid warning status may be assigned without an appeal or other action by the student.
- A student on financial aid probation may receive Title IV, HEA program funds for one payment period. While a student is on financial aid probation, the IHE may require the student to fulfill specific terms and conditions such as taking a reduced course load or enrolling in specific courses. At the end of one payment period on financial aid probation, the student must meet the IHE's SAP standards or meet the requirements of the academic plan developed by the IHE and the student to qualify for further Title IV, HEA program funds.
g) If the IHE permits a student to appeal a determination by the IHE that he or she is not making SAP, the policy describes:
- How the student may reestablish his or her eligibility to receive assistance under the Title IV, HEA programs.
- The basis on which a student may file an appeal: The death of a relative, an injury or illness of the student, or other special circumstances.
iii) Information the student must submit regarding why the student failed to make satisfactory academic progress, and what has changed in the student's situation that will allow the student to demonstrate SAP at the next evaluation.
2) Stipulates that the following definitions apply to the terms of SAP:
a) “Appeal” means a process by which a student who is not meeting the IHE’s SAP standards petitions the IHE for reconsideration of the student's eligibility for Title IV, HEA program assistance.
b) “Financial aid probation” means a status assigned by an IHE to a student who fails to make SAP and who has appealed and has had eligibility for aid reinstated.
c) “Financial aid warning” means a status assigned to a student who fails to make SAP at an IHE that evaluates academic progress at the end of each payment period.
d) “Maximum timeframe means:”
i) For an undergraduate program measured in credit hours, a period that is no longer than 150 percent of the published length of the educational program, as measured in credit hours, or expressed in calendar time.
- For an undergraduate program measured in clock hours, a period that is no longer than 150 percent of the published length of the educational program, as measured by the cumulative number of clock hours the student is required to complete and expressed in calendar time.
- For a graduate program, a period defined by the IHE that is based on the length of the educational program.
3) Stipulates that a student on financial aid probation for a payment period may not receive Title IV, HEA program funds for the subsequent payment period unless the student makes SAP or the IHE determines that the student met the requirements specified by the IHE in the academic plan for the student. (34 CFR 668.34)
State law
4) Establishes 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 programs consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs; eligibility, in part, is based upon financial need, GPA, California residency, and maintaining SAP, as specified. Defines SAP as the criteria required by applicable federal standards. Maximum Cal Grant award amounts for California State University (CSU) and University of California (UC) are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. Supplemental Cal Grant awards programs are available to students with dependent child(ren) and former and current foster youth attending CSU, UC, or a California Community Colleges (CCC) to assist with non-tuition costs such as living expenses. (EC § 69430 – 69433 and Sections 69465 - 69470)
5) Requires a “qualifying institution”, i.e. an institution able to enroll Cal Grant recipients, to:
a) Meet federal financial aid standards.
b) Maintain a student loan default rate below 15.5 percent and a graduation rate above 20 percent. (IHEs with 40 percent or less of undergraduates borrowing federal student loans are exempt from these requirements.)
c) Report enrollment, persistence, and graduation data for all students and Cal Grant recipients as well as job placement and earnings data for occupational programs. (EC§ 69432.7.)
ANALYSIS
This bill:
- In order to be deemed a qualifying IHE for purposes of Cal Grant eligibility, by the 2024-25 academic year, requires IHEs develop and implement policies defining satisfactory academic progress in a manner that is consistent with the federal standards and requires that IHE also comply with all of the following requirements:
- Set the standards for GPA and pace of completion at the
minimum federal standards as determined by existing federal regulations.
- Provide information to students about the IHE’s SAP standards and
financial aid appeals process during new student orientation and include student-friendly language on the institution’s internet website, course syllabi, and financial aid award letters regarding the standards and appeals process.
- Notify a student when the student has not achieved the SAP standards
following every term of enrollment, regardless of the frequency at which SAP is formally evaluated.
- Evaluate adherence to GPA and pace of completion standards based only
on cumulative measures and not on individual term measures.
- Exclude remedial coursework from maximum timeframe calculations if the
IHE offers remedial coursework.
- Allow a student who fulfills the terms and conditions of the student’s
academic plan to remain on “financial aid probation” as defined by federal regulation, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the student’s academic plan.
- Allow a student who changes majors to exclude credits and grades that do
not count toward the student’s new major in the SAP determination.
- In the case of SAP determination for a transfer student, when calculating
maximum timeframe as defined in federal regulations, only include those credits from other IHEs that count towards the students current program of study.
- Accept both electronic and hard copy financial aid appeals for any student
who is ineligible to receive financial aid due to the determination that the student did not meet SAP where the student is enrolled, subject to all of the following:
- A student who loses financial aid eligibility may submit an unlimited
number of appeals during any subsequent term following loss of financial aid eligibility, as specified.
- A student who previously disenrolled while being ineligible to
receive financial aid may appeal the loss of financial aid upon reenrollment, as specified.
- A student who is ineligible to receive financial aid must be provided
written notice of the financial aid appeals process, as specified.
- In reviewing a student’s appeal, the IHEs may consider
additional special circumstances and must consider a boarder range of special circumstances, including, death of a relative or other significant person, injury or illness, pregnancy or birth of a child, homelessness, loss of childcare, loss or change in employment, loss of access to transportation, being a victim of a serious crime, or natural disaster.
- A review of a student’s appeal and notification to the student of the
appeal decision be provided within 45 days of submission of a complete appeal. An IHE is prohibited from disenrolling a student for nonpayment of tuition and fees while the student’s appeal is pending.
- Provision of a second review for an appeal that has been denied,
as prescribed.
- Waive any requirement for third-party written documentation of the
special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained, as specified.
- IHEs are not required to provide retroactive financial aid for a
term preceding the term in which a student reenrolls
- Deletes the commission’s authorization to adopt regulations defining SAP.
- Makes various finding and declarations relating obstacles faced by
students who fail to meet SAP standards.
STAFF COMMENTS
- Need for the bill. According to the author, “For college and university students, access to financial aid is key to improving academic outcomes as well as addressing racial inequities and basic needs insecurity. While much attention has been paid to the need to expand financial aid access at the beginning of a student’s academic career, very little attention is given to whether students are subsequently able to maintain financial aid once enrolled. In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by federal regulations, such as a minimum Grade Point Average, a maximum timeframe for completion, and a minimum course completion rate. Despite the critical role played by financial aid in college achievement, data shows that sizeable numbers of underrepresented students lose access to financial aid due to SAP standards and it is these already marginalized students who are unlikely to return and achieve their higher education dreams. AB 789 would remove barriers that limit students’ ability to keep their financial aid. It would do this by establishing a common set of standards for SAP, including the appeals process, to ensure that all California students, regardless of the postsecondary educational institution they attend, are provided with the flexibility already allowed under federal law.”
- Satisfactory Academic Progress. SAP is a standard that students must meet to receive state and federal financial aid. Federal aid regulations require that all IHEs receiving federal aid have a reasonable SAP policy that specifies what is required of students to maintain financial aid eligibility. The policy must include the following elements:
An evaluation of a student’s academic progress.
Grade point average (GPA) requirement that the student must achieve at each evaluation: Students must maintain a minimum GPA per the policy of the individual IHE, to be set at no lower than 2.0 or achieve a standing consistent.
Progress requirement: Students must make progress towards their degree by completing a minimum percentage of attempted course units. The minimum percentage of units attempted must be successfully completed both cumulatively and by the end of each academic year.
Maximum number of attempted units: Students must complete their degree within a maximum specified amount of attempted course units. It is commonly set at 150 percent of the total unit requirements for the program in which the student is enrolled.
Conditions for placing a student on financial aid probation and financial aid warning and loss of assistance for IHEs that choose to use those statuses.
Conditions for appeal and for reestablishing eligibility for IHEs that permit their students to appeal.
Federal regulations offer a great deal of flexibility to IHEs regarding what factors they deem to be a special circumstance for student that would trigger the appeal process.
- What happens when a student fails to meet SAP? State statutes rely on the federal definition of SAP. A student who fails to meet SAP standards could lose eligibility for financial aid. For example, maintaining SAP is a condition for Cal Grant renewal. However, should they fall short, a student may appeal the determination on the basis of injury or illness, death, or other special circumstances, per the IHE’s appeals policy. A student may remain on aid despite not meeting standards with a successful appeal. Staff notes that in response to the COVID-19 crisis, the federal CARES Act provides additional flexibilities to IHEs regarding the calculation of SAP, which, in turn, softens standards for students who experience disruptions caused by the crisis. An IHE, without requiring an appeal from a student, may now exclude from an SAP calculation credits that were attempted but not completed.
This bill would codify a common set of standards for the SAP of students attending IHE. These standards seem to be permitted under federal regulations but not required. This measure seeks to help students who are struggling academically maintain their financial aid eligibility and afford students the full flexible allowed under federal regulations.
- Establishes requirements for appeals policy. Under federal regulations, there are no requirements related to how the appeals policy is structured. The bill establishes requirements for how an IHE is to communicate its SAP standards and appeals process to students, specifies criteria for handling SAP appeals, and ensures a student with a prior SAP disqualification has the opportunity to regain access to financial aid.
With regard to how IHEs communicate information to students, faculty have control over what information is provided on course syllabi, not IHEs. As such, staff recommends that the bill be amended so that instead of having IHEs include the prescribed information in the course syllabi, it requires IHEs to request that the information be included in the course syllabi.
- Consequences for failing to comply. Existing law establishes institutional eligibility criteria for participation in the Cal Grant program, including maintaining a specific student loan default rate limit and reporting enrollment, persistence, and graduation data for Cal Grant recipients. These standards were established to address concerns that state funds may be encouraging some students to attend poorly performing schools. This bill introduces new standards for IHEs to maintain Cal Grant eligibility relating to administrative procedures that affect a student’s ability to maintain financial aid eligibility. Failure to comply could result in the disqualification of the IHE from the Cal Grant program. If this occurs, students will be unable to use their Cal Grant award at that IHE. The policy's underlying assumption is that IHE can and will make an effort to maintain eligibility because there is greater incentive to participate in the state’s largest student aid program. Any addition to these eligibility standards for colleges participating in Cal Grant programs should be carefully considered to ensure that they warrant the use of the enforcement mechanism for noncompliance.
SUPPORT
California State Student Association (Co-Sponsor)
John Burton Advocates for Youth (Co-Sponsor)
NextGen California (Co-Sponsor)
Southern California College Access Network (Co-Sponsor)
Student Senate for California Community Colleges (Co-Sponsor)
The Institute for College Access & Success (Co-Sponsor)
uAspire (Co-Sponsor)
Unite-LA (Co-Sponsor)
University of California Student Association (Co-Sponsor)
3rd Street Youth Center & Clinic
Alliance for A Better Community
American Association of University Women - California
Asian Americans Advancing Justice-Southern California
Bakersfield College NextUp Program
Beyond Emancipation
Butte College Inspiring Scholars
CA African American Chamber of Commerce
California African American Chamber of Commerce
California Alliance of Caregivers
California Edge Coalition
Camino Nuevo Charter Academy
Campaign for College Opportunity
Children Now
College Access Plan
Community Coalition
Congregations Organized for Prophetic Engagement
Consejo De Federaciones Mexicanas
Doing Good Works
EA Family Services
El Monte Promise Foundation
Empowering Pacific Islander Communities
Faculty Association of California Community Colleges
Families in Schools
First Place for Youth
Fulfillment Fund
Generation Up
Glendale Community College - Student Financial Aid
GO Public Schools
Heart of Los Angeles
Housing Authority of City of Santa Paula
Immigrants Rising
Innercity Struggle
Let’s Go to College California
Los Angeles Unified School District
Los Angeles United Methodist Foundation
Merced County Human Services Agency
Motivating Our Students Through Experience
National Association of Social Workers, California Chapter
Norco College - Special Funded Programs
Northern California College Promise Coalition
Operation Jump Start
Our Voice: Communities for Quality Education
Partnership for Los Angeles Schools
Pivotal
Project Soar
Public Advocates Inc.
Puente Learning Center
Reading and Beyond
Rio Hondo College
San Jose-Evergreen Community College District
Sanctuary of Hope
Television Academy Foundation
Transformative Action Institute
United Friends of the Children
Voices
Young Invincibles
Youth Leadership Institute
OPPOSITION
None received
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 789
Author:(Berman and Cervantes)
As Amended Ver:May 18, 2023
Majority vote
SUMMARY
Establishes a common set of standards for the "satisfactory academic progress" (SAP) of students attending California's institutions of higher education (IHE). The bill also establishes requirements for how an IHE is to communicate its SAP standards and appeals process to students, specifies criteria for handling SAP appeals, and ensures a student with a prior SAP disqualification have the opportunity to regain access to financial aid.
Major Provisions
- Requires, commencing by the start of the 2024-25 academic year, an IHE to comply with various requirements regarding its standards of SAP used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining SAP in a manner that is consistent with federal standards.
- States the following Legislative findings and declarations:
- California has made substantial gains in ensuring low-income students receive financial aid at the onset of their academic careers through the expansion of the Cal Grant and California College Promise Grant programs;
- In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by Section 1091 of Title 20 of the United States Code and Section 668.34 of Title 34 of the Code of Federal Regulations (CFR);
- A report released in July 2021, titled "The Overlooked Obstacle – How Satisfactory Academic Progress Policies Impede Student Success and Equity" ("The Overlooked Obstacle"), found that 24% of first-year, California Community College students receiving a federal Pell Grant did not meet SAP standards during their first two consecutive academic terms. Black and Native American students were twice as likely as white and Asian students to not meet those standards. Students not meeting SAP standards was also found to be a significant issue at four-year universities;
- A 2021 study comparing the characteristics of students who did not meet SAP standards to those who did meet those standards found no difference in the students' motivation to attend and succeed in college. However, the students who did not meet those standards had significantly more life responsibilities, such as childcare and employment demands, and fewer resources, including access to food and housing, flexible work schedules, and reliable transportation;
- Students who are deemed as not meeting their institution's SAP standards during any two consecutive academic terms or one year of enrollment must have their Cal Grant and federal financial aid terminated unless they successfully appeal that determination;
- Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual postsecondary educational institution. Some postsecondary educational institutions that participate in state-funded financial aid programs do not take full advantage of federal flexibility related to grounds for appeal, unnecessarily limiting students' ability to maintain financial aid; and,
- "The Overlooked Obstacle" further revealed that 87% of the California Community College (CCC) students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
COMMENTS
The SAP. Currently, the United States (U.S.) Department of Education requires academic institutions receiving federal financial aid funds to establish a "reasonable SAP policy," and many state programs, including the Cal Grant, are linked to these same standards. [Students who do not meet SAP standards for two consecutive terms or one academic year are disqualified from receiving financial aid unless they successfully appeal to have aid reinstated.] Yet, many institutions of higher education in California have SAP policies that impose stricter standards than federally required, and unclear appeal processes that result in inconsistent treatment of students. This negatively impacts students' ability to both meet their institutions' SAP policies and successfully appeal to maintain financial aid.
The John Burton Advocates for Youth (JBAY) released a report in July 2021, titled "The Overlooked Obstacle – How Satisfactory Academic Progress Policies Impede Student Success and Equity," found that Black and Native American students were twice as likely as white and Asian students to not meet SAP standards. As a result, the data shows that sizeable numbers of underrepresented students lose access to financial aid due to SAP standards and it is these already underrepresented students who are unlikely to return and achieve their higher education dreams. The report also revealed that 87 percent of the California community college students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
Further, a 2022 report from the RP Group, The African American Transfer Tipping Point: Identifying the Factors That Impact Transfer among African American/Black Community College Students, found that for African American/Black community college students, being on academic probation was associated with a 70 percent reduction in the likelihood of graduation.[1]
The author states that, "given the enormous impact of financial aid receipt on college enrollment and retention, the changes in AB 789 are important steps in narrowing graduation gaps and inequities among low-income students and students of color."
Recent legislative efforts to reform SAP. During the 116th Congress (2019-2020), Senator Cory Booker introduced S. 5033, the Satisfactory Academic Progress Reset and Reform Act. The Act, in part, seeks to revise SAP requirements for federal student-aid programs, including by allowing a student who has not been enrolled in an IHE for two years to regain eligibility for federal student aid. The Act cited Congressional findings, including, but not limited to the following:
- The SAP requirements for Federal student aid programs have become increasingly strict and inflexible for students over the last 40 years;
- The increase in SAP requirements has made need-based Federal Pell Grant resemble a performance-based scholarship, despite the disproportionately negative impact on students and families who are low-income;
- Approximately 40% of first-year Federal Pell Grant recipients risk losing Federal student aid due to not meeting the credit completion component of SAP requirements;
- Many IHEs conduct an SAP status check every payment period, allowing students to benefit from a one-term "warning status" before losing Federal student aid or filing an appeal; however, students at IHEs that only evaluate SAP status once per year are at risk of losing their Federal student aid immediately upon learning of their status; and,
- Current SAP policy disproportionately harms Black, Latinx, and Native American students. In 2015 through 2016, 57% of Black students, 47% of Latinx students, and 51% of Native American students relied on Federal Pell Grants to pay for college, while for that same year, 39% of all undergraduate students received a Federal Pell Grant.
The Act was referred to the Senate Committee on Health, Education, Labor, and Pensions; however, the Act was not heard before the 116th Congressional Session adjourned.
Concerns from IHEs. While the California State University (CSU), University of California (UC), and the Association of Independent California Colleges and Universities (AICCU) do not have a formal position on this measure, the segments have expressed several policy concerns, including, but not limited to, the following:
- Providing information to students about the IHE's SAP standards and financial appeal process during new student orientation is overwhelming. Further, it will not apply to most students and could send a message that the IHE expects the students to fail academically.
- Remove the current language in the bill on not counting non-major courses or remedial coursework toward SAP GPA because it appears to conflict with Federal regulations.
- Institute a once-per-year minimum for SAP appeals at each institution (rather than state 'may not limit').
- Alert students of appeal decision within 45 days rather than 30 days.
- Removal of the reporting requirements because some of the segments do not currently collect the data as required to be collected in this measure.
According to the Author
"For college and university students, access to financial aid is key to improving academic outcomes as well as addressing racial inequities and basic needs insecurity."
The author contends that, "while much attention has been paid to the need to expand financial aid access at the beginning of a student's academic career, very little attention is given to whether students are subsequently able to maintain financial aid once enrolled. In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by federal regulations, such as a minimum Grade Point Average, a maximum timeframe for completion, and a minimum course completion rate."
Further, the author states, "despite the critical role played by financial aid in college achievement, data shows that sizeable numbers of underrepresented students lose access to financial aid due to SAP standards and it is these already marginalized students who are unlikely to return and achieve their higher education dreams."
Pursuant to the author, "AB 789 would remove barriers that limit students' ability to keep their financial aid. It would do this by establishing a common set of standards for SAP, including the appeals process, to ensure that all California students, regardless of the postsecondary educational institution they attend, are provided with the flexibility already allowed under federal law."
Arguments in Support
According to the JBAY (sponsor) and uAspire (Co-Sponsor) of this measure, "The U.S. Department of Education requires academic institutions receiving federal financial aid funds to establish a 'reasonable satisfactory academic progress (SAP) policy,' and many state programs, including the Cal Grant, are linked to these same standards. Students who do not meet SAP standards for two consecutive terms or one academic year are disqualified from receiving financial aid unless they successfully appeal to have aid reinstated. Yet, many institutions of higher education in California have SAP policies that impose stricter standards than federally required and unclear appeal processes that result in inconsistent treatment of students. This negatively impacts students' ability to both meet their institutions' SAP policies and successfully appeal to maintain financial aid."
Further, "AB 789 will also create a pathway for students who have disenrolled while on SAP disqualification to regain aid upon re-enrollment. Given the enormous impact of financial aid receipt on college enrollment and retention, these changes are important steps in narrowing graduation gaps among low-income students and students of color as well as supporting California's goal of increasing enrollment numbers across the state's postsecondary institutions."
Arguments in Opposition
According to the Californians for Equal Rights Foundation, "by taking away the authority of the State Student Aid Commission to regulate aid recipients' satisfactory academic progress, AB 789 amounts to another legislative attempt to assault academic standards and merit. Specifically, AB 789 would change the long-standing requirement by the Cal Grant Program for a student recipient to make satisfactory academic progress at a qualifying institution. State policy makers should encourage excellence through best practices and healthy competition among students."
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
- CCC:
- One-time Proposition 98 General Fund costs, potentially in the hundreds of thousands of dollars total across all 115 campuses, to update policies and procedures, develop new policies as required by this bill, and provide training, professional development and practices.
- One-time General Fund costs, in the low hundreds of thousands of dollars, to the CCC Chancellor's Office to provide technical assistance to CCCs.
- CSU: Potential, minor one-time General Fund costs to 23 CSU campuses to make changes to SAP practices, if necessary.
- UC: Potential, minor one-time General Fund costs to nine UC campuses to make changes to SAP practices, if necessary.
- California Student Aid Commission (CSAC): Ongoing General Fund costs, of an unknown but potentially significant amount, to provide Cal Grant financial aid to students who would have lost their Cal Grant eligibility under an IHE's current SAP rules and appeals process and would not have under the rules prescribed in this bill.
VOTES
ASM HIGHER EDUCATION: 12-0-0
YES: Mike Fong, Ta, Addis, Arambula, Gabriel, Irwin, Low, Ortega, Sanchez, Santiago, Wallis, Weber
ASM APPROPRIATIONS: 11-0-5
YES: Holden, Bryan, Calderon, Wendy Carrillo, Mike Fong, Hart, Lowenthal, Papan, Pellerin, Weber, Ortega
ABS, ABST OR NV: Megan Dahle, Dixon, Mathis, Robert Rivas, Sanchez
UPDATED
VERSION: May 18, 2023
CONSULTANT: Jeanice Warden / HIGHER ED. / (916) 319-3960 FN: 0000780
RP Group, The African American Transfer Tipping Point: Identifying the Factors That Impact Transfer among African American/Black Community College Students, 2022. https://rpgroup.org/Portals/0/Documents/Projects/African_American_Transfer_Tipping_Point-(AATTP)-Study/AATTP_Brief1_Fall2022.pdf ↑
Date of Hearing: May 3, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
ABPCA Bill Id:AB 789
Author:(Berman) – As Amended Ver:April 20, 2023
Policy Committee: | Higher Education | Vote: | 12 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill establishes a common set of standards for the “satisfactory academic progress” (SAP) of students attending California’s institutions of higher education (IHE). The bill also establishes requirements for how an IHE is to communicate its SAP standards and appeals process to students, specifies criteria for handling SAP appeals, and ensures a student with a prior SAP disqualification have the opportunity to regain access to financial aid.
In addition, the bill requires a one-time report on implementation of this bill’s requirements and annual reporting from IHEs on information about SAP implementation, disaggregated in various ways.
Specifically, this bill:
- Deletes the California Student Aid Commission’s (CSAC) authorization to adopt regulations defining SAP and instead requires, commencing by the start of the 2024-25 academic year, an IHE to comply with various requirements regarding its standards of SAP used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining SAP in a manner that is consistent with federal standards.
- Requires, by January 15, 2026, and each January 15 thereafter, the California Community Colleges (CCC) Chancellor’s Office, the California State University (CSU) Chancellor’s Office, and, as a condition of participation in the Cal Grant Program, the University of California (UC) Office of the President, annually report to the Legislature, certain information about SAP at their IHEs, including information about the number of students who became ineligible for financial aid due to SAP determinations and information about SAP appeals.
- Requires, by January 31, 2025, the CCC Chancellor’s Office, the CSU Chancellor’s Office, and, as a condition of participation in the Cal Grant Program, the UC Office of the President to report to the Legislature with an update on the status of this bill’s requirements.
FISCAL EFFECT:
- CCC
- One-time Proposition 98 General Fund costs, potentially in the hundreds of thousands of dollars per CCC campus, to update policies and procedures, develop new policies and procedures as required by this bill, and provide training, professional development and release time to financial staff regarding the new SAP practices. Costs would be lower to the extent some campuses may already align their practices with certain requirements of this bill. The state has 115 CCC campuses.
- Ongoing Proposition 98 General Fund costs to CCC campuses, between $2.4 million and $3.2 million, for 115 colleges to collect, evaluate, and report specified data regarding SAP.
- One-time General Fund costs, in the low hundreds of thousands of dollars, to the CCC Chancellor’s Office to provide technical assistance to CCCs about the SAP changes and to fulfill the reporting requirement.
- CSU
- Potential, minor one-time General Fund costs to 23 CSU campuses to make changes to SAP practices, if necessary.
- Minor, one-time General Fund costs to the CSU Chancellor’s Office to fulfill the reporting requirement.
- Ongoing General Fund costs to CSU campuses, in the low millions of dollars annually, for 23 CSUs to collect, evaluate, and report specified data regarding SAP.
- UC
- Potential, minor one-time General Fund costs to nine UC campuses to make changes to SAP practices, if necessary.
- Minor, one-time General Fund costs to the UC Office of the President to fulfill the reporting requirement.
- Ongoing General Fund costs to UC campuses of about $1 million, with higher upfront costs, for nine UCs to collect, evaluate, and report specified data regarding SAP.
- CSAC
Ongoing General Fund costs, of an unknown but potentially significant amount, to provide Cal Grant financial aid to students who would have lost their Cal Grant eligibility under an IHE’s current SAP rules and appeals process and would not have under the rules prescribed in this bill.
For the 2021-22 academic year, CSAC indicates students lost about $64 million in Cal Grant funding due to SAP issues. If 5% of Cal Grant funding was regained as a result of this bill, costs would be about $3 million. If 15% was regained, costs would be about $9.5 million.
COMMENTS:
- Purpose. According to the author:
AB 789 would remove barriers that limit students’ ability to keep their financial aid. It would do this by establishing a common set of standards for SAP, including the appeals process, to ensure that all California students, regardless of the postsecondary educational institution they attend, are provided with the flexibility already allowed under federal law.
- Background. In order to maintain state Cal Grant financial aid or federal financial aid, students must meet certain SAP standards. Federal law requires IHEs to include three elements in their SAP standard: minimum grade point average, a maximum timeframe for completion, and a minimum course completion rate. Federal law does not specify what these requirements for IHEs, but instead sets a minimum threshold and allows IHEs to adjust upward.
Students who are deemed as not meeting their IHE’s SAP standards during any two consecutive academic terms or one year of enrollment must have their state Cal Grant financial aid and federal financial aid terminated unless they successfully appeal that determination. Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual IHE.
According to the proponents of this bill, IHEs in California do not provide the full flexibility afforded under federal law for SAP standards and appeals, resulting in students losing state and federal financial aid. This bill seeks to establish a statewide standard for SAP and prevent IHEs from establishing additional requirements that are more restrictive than are federally mandated. This could result in students retaining or regaining their state and federal financial aid.
Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081
Date of Hearing: April 18, 2023
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Mike Fong, Chair
ABPCA Bill Id:AB 789 (
Author:Berman) – As Introduced Ver:February 13, 2023
SUBJECT: Student financial aid: Cal Grants: satisfactory academic progress.
SUMMARY: Requires, commencing by the start of the 2024-25 academic year, as part of the criteria to be a qualifying institution under the Cal Grant Program, an institution of higher education (IHE) to comply with various requirements regarding “satisfactory academic progress” (SAP) standards used to determine if a student qualifies for a Cal Grant and to develop and implement policies defining SAP in a manner that is consistent with the federal standards. Specifically, this bill:
- States the following Legislative findings and declarations:
- California has made substantial gains in ensuring low-income students receive financial aid at the onset of their academic careers through the expansion of the Cal Grant and California College Promise Grant programs;
- In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by Section 1091 of Title 20 of the United States Code and Section 668.34 of Title 34 of the Code of Federal Regulations (CFR);
- A report released in July 2021, titled “The Overlooked Obstacle – How Satisfactory Academic Progress Policies Impede Student Success and Equity” (“The Overlooked Obstacle”), found that 24% of first-year, California Community College students receiving a federal Pell Grant did not meet SAP standards during their first two consecutive academic terms. Black and Native American students were twice as likely as white and Asian students to not meet those standards. Students not meeting SAP standards was also found to be a significant issue at four-year universities;
- A 2021 study comparing the characteristics of students who did not meet SAP standards to those who did meet those standards found no difference in the students’ motivation to attend and succeed in college. However, the students who did not meet those standards had significantly more life responsibilities, such as childcare and employment demands, and fewer resources, including access to food and housing, flexible work schedules, and reliable transportation;
- Students who are deemed as not meeting their institution’s SAP standards during any two consecutive academic terms or one year of enrollment must have their Cal Grant and federal financial aid terminated unless they successfully appeal that determination;
- Current federal regulations allow students to appeal the loss of financial aid due to special circumstances as defined by each individual postsecondary educational institution. Some postsecondary educational institutions that participate in state-funded financial aid programs do not take full advantage of federal flexibility related to grounds for appeal, unnecessarily limiting students’ ability to maintain financial aid; and,
- “The Overlooked Obstacle” further revealed that 87% of the California Community College students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
- Requires the IHE, by the start of the 2024-25 academic year, to develop and implement policies defining SAP in a manner that is consistent with the federal standards, as specified. The IHE must comply with all of the following:
- Set the standards for grade point average and pace of completion at the minimum federal standards, as specified;
- Provide information to students about the institution’s SAP standards and financial aid appeals process during new student orientation, and include student-friendly language on the institution’s internet website, course syllabi, and financial aid award letters regarding the standards and appeals process;
- Notify a student when the student has not achieved the SAP standards following every term of enrollment, regardless of the frequency at which “satisfactory academic progress” is formally evaluated;
- Evaluate adherence to grade point average and pace of completion standards based only on cumulative measures and not on individual term measures;
- Exclude remedial coursework from maximum timeframe calculations;
- Allow a student who fulfills the terms and conditions of the student’s academic plan to remain on “financial aid probation” as specified, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the student’s academic plan;
- Allow a student who changes majors to exclude credits and grades that do not count toward the student’s new major in the SAP determination;
- In the case of a SAP determination for a transfer student, when calculating maximum timeframe, as specified, only include those credits from other institutions that count towards the student’s current program of study;
- Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet SAP, as defined by the institution where the student is enrolled, subject to all of the following:
- A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the number of appeals that may be submitted by a student or impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term. An appeal decision shall be finalized and communicated to the student by the end of the term in which the appeal was received;
- A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment;
- The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process; and,
- In reviewing a student’s appeal, the institution shall consider a broad range of special circumstances, including, but not limited to, any of the following:
- Death of a relative or other significant person;
- Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person;
- Pregnancy or birth of a child;
- Homelessness;
- Loss of childcare.
- Loss or change in employment;
- Loss of access to personal or public transportation;
- Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or civil liability; and,
- Natural disaster.
- The institution will review a student’s appeal and notify the student of the appeal decision within 30 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the student’s appeal is pending;
- The institution will offer a second review process for an appeal that is denied; and,
- The institution will waive any requirement for third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.
- Stipulates that, by January 15, 2026, and each January 15 thereafter, the CCC Chancellor’s Office (CCCCO), California State University (CSU) Office of the Chancellor, and, as a condition of participation in the Cal Grant Program, the University of California (UC) Office of the President (UCOP), must annually report to the Legislature all of the following information, for the preceding award year, disaggregated by race, ethnicity, gender, and status as a first-generation college student, transfer student, Federal Work-Study Program participant, and current or former foster youth:
- The number of students who became ineligible to receive financial aid due to the determination that they did not meet SAP;
- The number of students who submitted an appeal to have financial aid reinstated;
- The number of financial aid appeals that were denied;
- The number of financial aid appeals that were approved;
- A summary of the reasons financial aid appeals were denied; and,
- The number of students on “financial aid probation” as specified.
- On or before January 31, 2025, the office of the CCCCO, CSU Office of the Chancellor and, as a condition of participation in the Cal Grant Program, the UCOP shall report to the Legislature, an update on the status of implementation this measure.
- Defines “SAP” as the criteria required by applicable federal standards, as specified.
EXISTING LAW:
Federal law.
- Stipulates that an IHE must establish a reasonable SAP policy for determining whether an otherwise eligible student is making SAP in their educational program and may receive assistance under the Title IV, Higher Education Act (HEA) programs [these are the federal financial aid programs]. The IHE policies are deemed to be reasonable if, in part:
- The policy is at least as strict as the policy the IHE applies to a student who is not receiving assistance under the Title IV, HEA programs;
- The policy provides for consistent application of standards to all students within categories of students, e.g., full-time, part-time, undergraduate, and graduate students, and educational programs established by the IHE;
- The policy provides that a student's academic progress is evaluated:
- At the end of each payment period if the educational program is either one academic year in length or shorter than an academic year; or,
- For all other educational programs, at the end of each payment period or at least annually to correspond with the end of a payment period;
- The policy specifies the grade point average (GPA) that a student must achieve at each evaluation, or if a GPA is not an appropriate qualitative measure, a comparable assessment measured against a norm; if a student is enrolled in an educational program of more than two academic years, the policy specifies that at the end of the second academic year, the student must have a GPA of at least a “C” or its equivalent, or have academic standing consistent with the institution's requirements for graduation;
- The policy describes how a student's GPA and pace of completion are affected by course incompletes, withdrawals, or repetitions, or transfers of credit from other institutions. Credit hours from another institution that are accepted toward the student's educational program must count as both attempted and completed hours;
- If the institution places students on financial aid warning, or on financial aid probation, as, the policy describes these statuses and that:
- A student on financial aid warning may continue to receive assistance under the Title IV, HEA programs for one payment period despite a determination that the student is not making satisfactory academic progress. Financial aid warning status may be assigned without an appeal or other action by the student; and,
- A student on financial aid probation may receive Title IV, HEA program funds for one payment period. While a student is on financial aid probation, the institution may require the student to fulfill specific terms and conditions such as taking a reduced course load or enrolling in specific courses. At the end of one payment period on financial aid probation, the student must meet the institution's satisfactory academic progress standards or meet the requirements of the academic plan developed by the institution and the student to qualify for further Title IV, HEA program funds;
- If the institution permits a student to appeal a determination by the institution that he or she is not making satisfactory academic progress, the policy describes:
- How the student may reestablish his or her eligibility to receive assistance under the Title IV, HEA programs;
- The basis on which a student may file an appeal: The death of a relative, an injury or illness of the student, or other special circumstances; and,
- Information the student must submit regarding why the student failed to make satisfactory academic progress, and what has changed in the student's situation that will allow the student to demonstrate satisfactory academic progress at the next evaluation.
- Stipulates that the following definitions apply to the terms of SAP:
- “Appeal” means a process by which a student who is not meeting the IHE’s SAP standards petitions the institution for reconsideration of the student's eligibility for Title IV, HEA program assistance;
- “Financial aid probation” means a status assigned by an institution to a student who fails to make SAP and who has appealed and has had eligibility for aid reinstated;
- “Financial aid warning” means a status assigned to a student who fails to make SAP at an institution that evaluates academic progress at the end of each payment period;
- “Maximum timeframe means:”
- For an undergraduate program measured in credit hours, a period that is no longer than 150 percent of the published length of the educational program, as measured in credit hours, or expressed in calendar time;
- For an undergraduate program measured in clock hours, a period that is no longer than 150 percent of the published length of the educational program, as measured by the cumulative number of clock hours the student is required to complete and expressed in calendar time; and,
- For a graduate program, a period defined by the institution that is based on the length of the educational program
- Stipulates that a student on financial aid probation for a payment period may not receive Title IV, HEA program funds for the subsequent payment period unless the student makes SAP or the IHE determines that the student met the requirements specified by the IHE in the academic plan for the student (34 CFR 668.34).
State law. Establishes 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 programs consists of the Cal Grant A, Cal Grant B, and Cal Grant C programs; eligibility, in part, is based upon financial need, grade point average (GPA), California residency, and maintaining SAP, as specified. Defines SAP as the criteria required by applicable federal standards. Maximum Cal Grant award amounts for CSU and UC are established in the annual Budget Act and have traditionally covered all systemwide tuition and fees. Supplemental Cal Grant awards programs are available to students with dependent child(ren) and former and current foster youth attending CSU, UC, or a CCC to assist with non-tuition costs such as living expenses (EC Sections 69430 – 69433 and Sections 69465 - 69470).
FISCAL EFFECT: Unknown
COMMENTS: Purpose of this measure. According to the author, “for college and university students, access to financial aid is key to improving academic outcomes as well as addressing racial inequities and basic needs insecurity.”
The author contends that, “while much attention has been paid to the need to expand financial aid access at the beginning of a student’s academic career, very little attention is given to whether students are subsequently able to maintain financial aid once enrolled. In order to maintain a Cal Grant or federal financial aid, students must meet certain satisfactory academic progress (SAP) standards, governed by federal regulations, such as a minimum Grade Point Average, a maximum timeframe for completion, and a minimum course completion rate.”
Further, the author states, “despite the critical role played by financial aid in college achievement, data shows that sizeable numbers of underrepresented students lose access to financial aid due to SAP standards and it is these already marginalized students who are unlikely to return and achieve their higher education dreams.”
Pursuant to the author, “AB 789 would remove barriers that limit students’ ability to keep their financial aid. It would do this by establishing a common set of standards for SAP, including the appeals process, to ensure that all California students, regardless of the postsecondary educational institution they attend, are provided with the flexibility already allowed under federal law.”
The SAP. Currently, the U.S. Department of Education requires academic institutions receiving federal financial aid funds to establish a “reasonable SAP policy,” and many state programs, including the Cal Grant, are linked to these same standards. [Students who do not meet SAP standards for two consecutive terms or one academic year are disqualified from receiving financial aid unless they successfully appeal to have aid reinstated.] Yet, many institutions of higher education in California have SAP policies that impose stricter standards than federally required, and unclear appeal processes that result in inconsistent treatment of students. This negatively impacts students’ ability to both meet their institutions’ SAP policies and successfully appeal to maintain financial aid.
The John Burton Advocates for Youth (JBAY) released a report in July 2021, titled “The Overlooked Obstacle – How Satisfactory Academic Progress Policies Impede Student Success and Equity,” found that Black and Native American students were twice as likely as white and Asian students to not meet SAP standards. As a result, the data shows that sizeable numbers of underrepresented students lose access to financial aid due to SAP standards and it is these already underrepresented students who are unlikely to return and achieve their higher education dreams. The report also revealed that 87 percent of the California community college students who did not make SAP standards during their first two consecutive academic terms either disenrolled or lost their financial aid.
Further, a 2022 report from the RP Group, The African American Transfer Tipping Point: Identifying the Factors That Impact Transfer among African American/Black Community College Students, found that for African American/Black community college students, being on academic probation was associated with a 70 percent reduction in the likelihood of graduation.[1]
The author states that, “given the enormous impact of financial aid receipt on college enrollment and retention, the changes in AB 789 are important steps in narrowing graduation gaps and inequities among low-income students and students of color.”
Recent legislative efforts to reform SAP. During the 116th Congress (2019-2020), Senator Cory Booker introduced S. 5033, the Satisfactory Academic Progress Reset and Reform Act. The Act, in part, seeks to revise SAP requirements for federal student-aid programs, including by allowing a student who has not been enrolled in an IHE for two years to regain eligibility for federal student aid. The Act cited Congressional findings, including, but not limited to the following:
- The SAP requirements for Federal student aid programs have become increasingly strict and inflexible for students over the last 40 years;
- The increase in SAP requirements has made need-based Federal Pell Grant resemble a performance-based scholarship, despite the disproportionately negative impact on students and families who are low-income;
- Approximately 40% of first-year Federal Pell Grant recipients risk losing Federal student aid due to not meeting the credit completion component of SAP requirements;
- Many IHEs conduct an SAP status check every payment period, allowing students to benefit from a one-term “warning status” before losing Federal student aid or filing an appeal; however, students at IHEs that only evaluate SAP status once per year are at risk of losing their Federal student aid immediately upon learning of their status; and,
- Current SAP policy disproportionately harms Black, Latinx, and Native American students. In 2015 through 2016, 57% of Black students, 47% of Latinx students, and 51% of Native American students relied on Federal Pell Grants to pay for college, while for that same year, 39% of all undergraduate students received a Federal Pell Grant.
The Act was referred to the Senate Committee on Health, Education, Labor, and Pensions; however, the Act was not heard before the 116th Congressional Session adjourned.
Concerns from IHEs. While the CSU, UC, and the Association of Independent California Colleges and Universities (AICCU) do not have a formal position on this measure, the segments have expressed several policy concerns, including, but not limited to, the following:
- Providing information to students about the IHE’s SAP standards and financial appeal process during new student orientation is overwhelming. Further, it will not apply to most students and could send a message that the IHE expects the students to fail academically.
- Remove the current language in the bill on not counting non-major courses or remedial coursework toward SAP GPA because it appears to conflict with Federal regulations.
- Institute a once-per-year minimum for SAP appeals at each institution (rather than state ‘may not limit’).
- Alert students of appeal decision within 45 days rather than 30 days.
- Removal of the reporting requirements because some of the segments do not currently collect the data as required to be collected in this measure.
Committee comments. As currently drafted, this measure requires IHEs to exclude remedial coursework from maximum timeframe calculations. However, not all IHEs offer remedial coursework.
Further, as currently drafted, this measure permits a student who loses financial aid eligibility to be able to appeal the determination during any subsequent term following the loss of financial aid eligibility. The measure stipulates that IHEs cannot limit the number of appeals that may be submitted by a student or impose deadlines for submitting an appeal that are earlier than three weeks before the end of term. However, if a student files an appeal close to the end of the term there may not be enough time for the approval process to occur.
Additionally, this measure will allow a student who previously disenrolled while being ineligible to receive financial aid to appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment. IHE’s are not able to reinstate financial aid because a student disenrolled during SAP failure. The student was not eligible at the time of disenrollment if the appeal was not approved.
Further, the measure also requires IHEs to provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process. However, a student may not know the best way to file the appeal or that, pursuant to this measure, the student is allowed to request a second review of the appeal.
Moreover, this measure requires IHEs to consider a broad range of special circumstances. However, the IHEs may have other circumstances deemed appropriate for approval of the SAP appeal.
Lastly, the measure requires the IHEs to provide a second review process for an appeal that is denied. However, the measure is currently unclear as who will conduct the second review.
With aforementioned in mind, the Committee recommends, and the author as agreed to accept, all of the following amendments:
(4)(E) Exclude remedial coursework from maximum timeframe calculations if the institution offers remedial coursework.
(4)(I)(i) A student who loses financial aid eligibility may appeal the determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the number of appeals that may be submitted by a student throughout the duration of their enrollment except the institution may limit the number of appeals per term. If the institution chooses to limit the number of appeals per term, the second review process for an appeal that is denied still applies pursuant to subparagraph (vi). The institution shall not impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term. An appeal decision shall be finalized and communicated to the student by the end of the term in which the appeal was received.
(ii) A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon the first term of reenrollment. Nothing in this subparagraph shall be interpreted to require institutions to provide retroactive financial aid for a term preceding the term in which a student reenrolls.
(iii) The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process, including the process for a student to file an appeal, information about the second review process for an appeal that is denied as described in subparagraph (vi), and how a student may request a second review.
(iv) In reviewing a student’s appeal, the institution shall consider a broad range of special circumstances, including, but not limited to, any of the following and may consider any additional special circumstances that the institution deems appropriate:
(vi) The institution shall offer provide a second review process for an appeal that is denied if requested by a student. The second review shall be conducted by a reviewer who did not participate in the first review.
Arguments in support. According to the JBAY (sponsor) and uAspire (Co-Sponsor) of this measure, “The U.S. Department of Education requires academic institutions receiving federal financial aid funds to establish a ‘reasonable satisfactory academic progress (SAP) policy,’ and many state programs, including the Cal Grant, are linked to these same standards. Students who do not meet SAP standards for two consecutive terms or one academic year are disqualified from receiving financial aid unless they successfully appeal to have aid reinstated. Yet, many institutions of higher education in California have SAP policies that impose stricter standards than federally required and unclear appeal processes that result in inconsistent treatment of students. This negatively impacts students’ ability to both meet their institutions’ SAP policies and successfully appeal to maintain financial aid.”
Further, “AB 789 will also create a pathway for students who have disenrolled while on SAP disqualification to regain aid upon re-enrollment. Given the enormous impact of financial aid receipt on college enrollment and retention, these changes are important steps in narrowing graduation gaps among low-income students and students of color as well as supporting California’s goal of increasing enrollment numbers across the state’s postsecondary institutions.”
REGISTERED SUPPORT / OPPOSITION:
Support
John Burton Advocates for Youth (Sponsor)
NextGen California (Co-Sponsor)
uAspire (Co-Sponsor)
3rd Street Youth Center & Clinic
A Better Way, Inc. - Permanency Program
American Association of University Women - California
Bakersfield College - EOPS/NextUp
Barstow Community College
Beyond Emancipation
Butte College Inspiring Scholars
CA African American Chamber of Commerce
California State Student Association
California State University, Dominguez Hills - Toro Guardian Scholars Program
Campaign for College Opportunity
Center for Public Interest Law/children's Advocacy Institute/university of San Diego
Children Now - Child Welfare
Children's Legal Services of San Diego
Citrus College
Creative Alternatives - Transitional Housing Program
Cuesta College - Financial Aid
Dolphin Guardian Scholars Program - CSU Channel Island
EA Family Services
Empowering Pacific Islander Communities (EPIC)
Empowering Pacific Islander Communities (EPIC) Fiscally Sponsored by Community Partners
Faculty Association of California Community Colleges
First Place for Youth
Foster Care Counts
GENup
Glendale Community College District
Haven of Hope
Immigrants Rising
Jovenes, Inc.
Kid City Hope Place
Mary Graham Children's Foundation
Merced County - Children's Services Branch
Mt. San Antonio College
National Association of Social Workers, California Chapter
Norco College - Special Funded Programs
North Orange Community College District
Orange County Business Council
Pivotal
Power to Soar
Prevail
Public Advocates, Inc.
Reedley College - EOPS
Rio Hondo College
San Benito County - Health & Human Services
San Jose-Evergreen Community College District
Shasta College - Inspiring & Fostering Independence (SCI*FI)
Southern California College Attainment Network
Student Senate for California Community Colleges
Sycamores
The Education Trust - West
The Institute for College Access & Success
TLC Child & Family Services - Transition Age Youth Housing
Together We Rise Dba Foster Love
UNITE-LA, Inc.
United Friends of The Children
University of California Student Association
Voices - Solano
Waking the Village
Walden Family Services
Woodland Community College Foster & Kinship Care Education
Young Invincibles
Youth Law Center
Youth Leadership Institute
Opposition
None on file.
Analysis Prepared by: Jeanice Warden / HIGHER ED. / (916) 319-3960
RP Group, The African American Transfer Tipping Point: Identifying the Factors That Impact Transfer among African American/Black Community College Students, 2022. https://rpgroup.org/Portals/0/Documents/Projects/African_American_Transfer_Tipping_Point-(AATTP)-Study/AATTP_Brief1_Fall2022.pdf ↑
Discussed in Hearing
Assembly Floor
Assembly Floor
Senate Standing Committee on Education
Assembly Standing Committee on Higher Education
Bill Author
Bill Co-Author(s):