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California Association of Private Postsecondary Schools

California A.B. 1538 - State Financial Aid

04/02/2014

Sponsor: Assemblymember Susan Eggman (D)

Summary: Stipulates that a qualifying institution with a three-year cohort default rate that is equal to or greater than 15.5 percent, as certified by the Student Aid Commission by October 1 of the prior academic year, may be ineligible for initial and renewal Cal Grant awards at the institution.

Provides that an institution that is ineligible for initial and renewal Cal Grant awards at the institution may be eligible if that institution has an undergraduate student body comprised of at least 2/3 low-income students as certified by the commission by October 1 of the prior academic year, has a three-year cohort default rate less than 20 percent, or has a graduation rate greater than 70% for students taking 150% or less of the expected time to complete degree requirements.

Requires the Student Aid Commission to adopt any rules or regulations necessary to implement the provisions by March 1, 2015, and to report to the Legislature, by January 1, 2016, on its review and recommendations regarding additional criteria that would be appropriately considered in determining eligibility for receiving federal Pell grants.

Amendment #1 (3/27/2014): http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1501-1550/ab_1538_bill_20140326_amended_asm_v98.pdf

http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1501-1550/ab_1538_bill_20140122_introduced.pdf

Status: Introduced 1/22/2014. Referred to Assembly Committee on Higher Education 1/30/2014. Hearing canceled 3/18/2014. Amended, re-referred to Assembly Committee on Higher Education 3/27/2014. Hearing held, reported 4/1/2014.

Outlook: During the April 1 hearing of the Assembly Committee on Higher Education, this measure was reported favorably by a 9-0 vote. The sponsor introduced this measure as an effort to protect low income students by providing flexibility to schools that serve particularly low income earning populations. Representatives from the California Association of Independent Colleges and Universities, American Career Colleges and Humphreys College testified in favor of the measure.

This measure was withdrawn by the sponsor, amended and re-referred to the Assembly Committee on Higher Education. The author's amendment requires the Student Aid Commission to report to the legislature on the eligibility of students in the state for receiving federal Pell grants.

The sponsor is a member of the majority party but has not registered any cosponsors from the chamber. The sponsor has garnered to support of two majority Senate cosponsors, Senators Cathleen Galgiani (D) and Jerry Hill (D). The Democratic Party controls both legislative chambers as well as the Governor's office. 

*Information provided by www.stateside.com