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August 21, 2008

CA Budget Stalemate Hurts Students. . . Again

By Deborah Frankle Cochrane, Research Analyst

California's budget delays are affecting college students' ability to get their financial aid. In addition to more than 100,000 students who may face delays in getting the Cal Grants that they’ve been promised, there are 25,000 high-achieving, low-income students whose grants may or may not be funded at all. The Governor’s initial January budget proposal cut the already underfunded "competitive" Cal Grant program that serves those 25,000 students, most of whom go to community college, and its status has been uncertain ever since.

During last year's budget crisis, some colleges were able to help students by providing the grant aid up front and getting reimbursed after a budget was signed. Others – largely the community colleges and California State Universities, where the majority of Cal Grant recipients attend – didn’t have the resources to help in this way, and students were left not knowing when they would have money to buy books.

This year, the situation is worse. It’s already late August, and students' college plans may depend on whether or when the grant money they’re counting on will come through. The good news is that the competitive Cal Grant program is not eliminated in the Governor's latest budget revision, released earlier this week. This is a notable shift: the California legislature has already signaled its desire and intention to maintain the program, and the Governor’s change of heart means it is likely to survive.

The bad news is that the students who need these grants still don't have the security they need to make plans, and it's not clear when they will. Have they put deposits down at campuses that they may not be able to attend? Have they registered for classes, not knowing how they'll pay for them? Or have they given up their spot, missed important registration dates, or decided not to go to college? These decisions will cost California, and these Californians, a lot more than a few thousand dollars.

August 14, 2008

Helping Students

The San Francisco Chronicle

August 14, 2008

Editor - "Students seek aid in record numbers" Aug. 11 highlights an important trend, but could leave readers confused about the availability of federal financial aid.

While there are caps on how much you can receive in federal grants and loans each year, there are no limits on how many students can qualify for these important funding sources.

And if students' financial circumstances take a turn for the worse, they should always let their college financial aid office know.

In certain circumstances, such as a parent's job loss, the college can adjust the student's aid eligibility. Even if they don't qualify for more grant aid, federal loans can help both students and parents bridge unexpected financial gaps more safely and affordably than credit cards, home equity, retirement funds or private student loans.

Debbie Frankle Cochrane

The Institute for College Access & Success
Berkeley