text:
The commission shall appoint a director who shall be the chief executive officer for the commission and who shall serve at the pleasure of the commission. The Legislature hereby requests the commission to designate that executive officer as the person holding the position confidential to it, within the meaning of subdivision (e) of Section 4 of Article VII of the Constitution.

The commission may employ other employees as it deems necessary to carry out its functions under this chapter.

history: (History: Amended by Stats. 1993, Ch. 8, Sec. 18. Effective April 15, 1993.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


kind: section

code: EDC

text: The commission may delegate to the director any power, duty, purpose, function, or jurisdiction that the commission may lawfully delegate, including the authority to enter into and sign contracts on behalf of the commission. The director may redelegate any of those powers, duties, purposes, functions, or jurisdictions to his or her designee, unless by statute, or rule or regulation, the director is expressly required to act personally.

history: (History: Added by Stats. 1992, Ch. 482, Sec. 2. Effective August 14, 1992.)

division: 5. GENERAL PROVISIONS

part: 42. STUDENT FINANCIAL AID PROGRAM

title: 3. POSTSECONDARY EDUCATION

chapter: 2. Student Financial Aid Programs

article: 2. The Student Aid Commission

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 2. The Student Aid Commission


text:
Notwithstanding any other law:

(a) The commission shall grant up to an additional 30 calendar days beyond an application deadline for any financial aid program administered by the commission pursuant to this part if the commission receives and approves a formal request to postpone the application deadline from either the superintendent of a school district or community college district or from the president or chancellor of a California institution of higher education that is eligible to receive state funds for student financial assistance and the commission finds that a qualifying event, as defined in subdivision (e), has occurred.

(b) Notwithstanding subdivision (a), the commission may grant up to an additional 30 calendar days beyond an application deadline for any financial aid program administered by the commission pursuant to this part if the commission finds that a qualifying event described in paragraph (2) or (3) of subdivision (e) has occurred.

(c) A postponement of an application deadline granted by the commission pursuant to this section shall apply to all financial aid applicants within the school district, community college district, or the area or region, such as a city or county, that was predominantly affected by the qualifying event.

(d) For purposes of this section, the commission may, on a permanent basis, delegate to the director of the commission the authority to grant a deadline postponement authorized by this section.

(e) For purposes of this section, a “qualifying event” is any event or extenuating circumstance outside of the control of the pupils or students in an affected school district, community college district, or area or region that has had an adverse effect on the ability of students within the district to successfully complete and submit their financial aid applications by an established statutory deadline. The qualifying event shall have occurred or been ongoing during the period for which financial aid applications were available to submit for the following academic year, and includes, but is not limited to, any of the following types of events:

(1) A natural disaster.

(2) A state of emergency declared by the Governor or the President of the United States.

(3) A delay in the opening of the Free Application for Federal Student Aid, as declared by the commission.

(4) A labor action.

(f) The commission may establish procedures, which may include a standardized application form, through which a postponement of an application deadline may be requested by the individuals referenced in subdivision (a). The formal application to the commission shall be submitted no later than 15 business days after the occurrence of the qualifying event in question, or, if the qualifying event is ongoing, no later than 15 business days after the conclusion of the qualifying event, and shall include, at a minimum, all of the following:

(1) A description of the qualifying event that is the basis for the request, including how the event in question has had an adverse effect on students’ ability to submit their financial aid applications by the established deadline.

(2) A list of any financial aid outreach events, including, but not limited to, workshops or webinars sponsored by the commission, that have been canceled or delayed due to the qualifying event.

(3) When available, data showing that there has been, or is likely to be, a reduction in the number of students who have completed a financial aid application from the previous year.

(g) If the commission grants the postponement of an application deadline pursuant to this section, the commission shall issue a written notice of the postponement of the deadline within 48 hours of granting the postponement of the deadline. The notice shall include the approved postponed deadline, and shall be sent to all of the following or their respective designees:

(1) The individual who requested the extension pursuant to subdivision (a), if applicable.

(2) The Superintendent of Public Instruction.

(3) The Governor.

(4) The Director of Finance.

(5) The President of the University of California.

(6) The Chancellor of the California State University.

(7) The Chancellor of the California Community Colleges.

(8) The Joint Legislative Budget Committee and the chairpersons of the relevant fiscal and policy committees of the Legislature.

(h) When granting a postponement of an application deadline pursuant to this section, the commission shall post all of the following on its internet website:

(1) The approved postponed deadline.

(2) The public school district, community college district, or area or region, such as a city or county, to which the approved postponed deadline applies.

(i) The authority to grant postponements of application deadlines established pursuant to this section shall apply to all of the following programs established in statute, and any other state-funded financial aid programs administered by the commission pursuant to this part:

(1) The Cal Grant A Entitlement program established by Article 2 (commencing with Section 69434) of Chapter 1.7.

(2) The Cal Grant B Entitlement program established by Article 3 (commencing with Section 69435) of Chapter 1.7.

(3) The California Community College Transfer Cal Grant Entitlement Program established by Article 4 (commencing with Section 69436) of Chapter 1.7.

(4) The Competitive Cal Grant A and B Awards program established by Article 5 (commencing with Section 69437) of Chapter 1.7.

(5) The Middle Class Scholarship Program established by Article 22 (commencing with Section 70020).

(j) Commission staff shall annually report all of the following information to the commission, the Joint Legislative Budget Committee, and the chairpersons of the relevant fiscal and policy committees of the Legislature:

(1) The total number of deadline postponement requests that were granted pursuant to subdivision (a).

(2) The total number of statewide financial aid applications received after the established application deadline.

(3) The specific school districts, community college districts, or areas or regions within the state that received approval to submit a delayed financial aid application pursuant to subdivision (a).

(4) Information regarding whether approved deadline postponements due to a natural disaster or state of emergency were made equally available to financial aid applicants across the impacted area or region.

history: (History: Amended by Stats. 2025, Ch. 31, Sec. 1. (AB 313) Effective January 1, 2026.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text: In no event shall the director of the commission, any employee of the commission, or any individual retained by the commission serve as chairperson or a member of an advisory committee of the commission. This prohibition shall include, but not be limited to, all advisory committees established by statute and all advisory committees established by the commission.

history: (History: Added by Stats. 1984, Ch. 268, Sec. 16.38. Effective June 30, 1984.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text:
The commission shall do all of the following:

(a) Report, on or before April 1 of each year, statistical data examining the impact and effectiveness of state-funded programs. The commission shall use common criteria in determining the impact of these programs, and shall have the authority to obtain any data from postsecondary educational institutions necessary for the reports. To the extent practicable, this report shall specifically note the number and the demographic characteristics of the students who qualify for a Cal Grant award based on obtaining high school graduation or its equivalent pursuant to subparagraph (B) of paragraph (4) of subdivision (a) of Section 69433.9.

(b) Collect and disseminate data concerning the financial resources and needs of students and potential students, and the scope and impact of existing state, federal, and institutional student aid programs.

(c) Report, on or before April 1 of each year, the aggregate financial need of individuals seeking access to postsecondary education and the degree to which current student aid programs meet this legitimate financial need.

(d) Develop and report annually the distribution of funds and awards among income groups, ethnic groups, grade point average levels, and postsecondary education segments.

(e) Prepare and disseminate information regarding the criteria used in distributing available student aid funds.

(f) Be authorized to expend funds for the purpose of disseminating information about all institutional, state, and federal student aid programs to potential applicants. This distribution of information shall primarily focus on potential applicants with the greatest financial need.

(g) In the event that the Financial Aid Shopping Sheet developed by the United States Department of Education is no longer available, develop, in consultation with the Bureau for Private Postsecondary Education, a similar form that a postsecondary educational institution subject to the requirements of either Section 66021.3 or 94912.5 shall use. The form shall provide students and their families with information, including, but not necessarily limited to, grant and scholarship opportunities and net costs associated with attendance at an institution.

history: (History: Amended by Stats. 2025, Ch. 648, Sec. 4. (SB 67) Effective January 1, 2026.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text:
(a) Notwithstanding any other law, the commission may receive donations, bequests, grants, and philanthropic funding, subject to conditions or restrictions that the executive director of the commission may deem advisable, and subject to the approval of the Director of Finance as provided in Section 11005 of the Government Code.

(b) Beginning January 1, 2024, at the first regular commission meeting of the calendar year, the commission shall publicly report both of the following:

(1) The source, and the amount from each source, of any philanthropic funding received during the calendar year immediately preceding the reporting deadline.

(2) The purpose for which that philanthropic funding was used.

history: (History: Added by Stats. 2022, Ch. 187, Sec. 1. (AB 2286) Effective January 1, 2023.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text:
(a) The Community College Student Financial Aid Outreach Program is hereby established. The commission shall, in consultation with the office of the Chancellor of the California Community Colleges, develop and administer this program for the purpose of providing financial aid training to high school and community college counselors and advisers who work with students planning to attend or attending a community college. This training shall also address the specific needs of all of the following:

(1) Community college students intending to transfer to a four-year institution of higher education.

(2) Foster youth and former foster youth, as defined in subdivision (b) of Section 66025.9.

(3) Homeless youth and former homeless youth, as defined in subdivision (b) of Section 66025.9.

(4) Students with disabilities.

(b) The program shall provide specialized information on financial aid opportunities available to community college students, with a particular focus on students who plan to transfer to a four-year college or university. The commission shall work in collaboration with the Chancellor of the California Community Colleges and other segments of higher education to develop and distribute this specialized information to assist community college students who are planning to transfer to a four-year college or university. Each year, the program shall offer financial aid workshops for high school and community college counselors, targeted for students planning to attend a community college or to transfer from a community college to a four-year institution of higher education. The program shall assist community college counselors in conducting student and family workshops that provide general information about financial aid and technical assistance in completing financial aid forms.

(c) The program shall concentrate its efforts on high schools and community colleges that are located in geographic areas that have a high percentage of low-income families.

history: (History: Amended by Stats. 2019, Ch. 163, Sec. 3. (AB 806) Effective January 1, 2020.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text: As used in this division, “commission” means the Student Aid Commission created by this article.

history: (History: Amended by Stats. 1989, Ch. 1113, Sec. 9.5.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text:
(a) The commission may enter into an agreement with a public agency of a state other than California, or a private entity related to an agency of another state, to assist the other agency or entity in implementing student financial aid programs, including providing assistance with processing grants, fellowships, and loans through the use of automated information systems. The commission may receive payment, reimbursement, or other resources as consideration for services provided pursuant to agreements entered into under this section.

(b) The commission shall establish fees for services it provides pursuant to this section in order to recover, at a minimum, the full costs of providing those services, including all direct and indirect costs.

(c) The Financial Aid Technical Assistance Fund is hereby created in the State Treasury, and moneys in the fund shall be available, upon appropriation by the Legislature to the commission, for the direct and indirect costs of providing assistance to agencies and entities of other states with implementation of Dream Act programs and to improve financial aid services for California. The commission shall deposit the proceeds of the fees established under this section into the fund. Only the moneys received for purposes of this section shall be deposited into the fund. The fund shall be credited with all of the investment income earned by the moneys deposited in the fund. Moneys in the fund are not part of the General Fund as defined in Section 16300 of the Government Code.

(d) The commission shall use moneys deposited in the fund for all costs associated with providing technical assistance to agencies of states other than California, and related private entities, pursuant to this section, and moneys remaining in the fund after those costs are retired shall be used to improve student financial aid services for California. Prior to the expenditure of these residual funds, the commission shall submit a detailed expenditure plan for approval by the Department of Finance as part of the annual budget process.

(e) Beginning October 1, 2014, the commission shall submit an annual report to the Department of Finance and the Joint Legislative Budget Committee detailing the total revenues collected in the fund, by service provided and applicable fee collected, and the use of the moneys in the fund.

history: (History: Added by Stats. 2013, Ch. 50, Sec. 1. (AB 94) Effective July 1, 2013.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text: The commission shall work cooperatively with the State Department of Social Services to develop an automated system to verify a student’s status as a foster youth to aid in the processing of applications for federal financial aid.

history: (History: Added by Stats. 2017, Ch. 722, Sec. 1. (SB 12) Effective January 1, 2018.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text:
(a) The Student Aid Commission, in consultation with an advisory committee of students and representatives of postsecondary institutions, may make adjustments to award selection procedures and selection criteria. In determining adjustments, the commission shall consider at least all of the following factors:

(1) The impact of the adjustments on the distribution of funds and awards among income groups, ethnic groups, and grade point average levels.

(2) The impact of the adjustments on the distribution of funds and awards among postsecondary education segments.

(3) The costs of implementing proposed adjustments.

(4) The availability of financial aid from other sources for students who qualify for an award.

(b) The commission may also consider the impact of inflation in the proposed adjustments pursuant to subdivision (a).

(c) In proposing changes to the procedures and criteria for award selection that would result in a substantive change in the recipient population, the commission shall submit the proposed changes for public review and comment in accordance with procedures established in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

history: (History: Amended by Stats. 1989, Ch. 1113, Sec. 11.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text: The Student Aid Commission shall, with the assistance of the Attorney General’s office, seek refunds on any awards to students made under this part that resulted from the student or his or her parents, or both, reporting information concerning their status incorrectly, with the incorrect information leading to the establishment of the student’s financial eligibility to receive an award.

history: (History: Amended by Stats. 2006, Ch. 43, Sec. 4. Effective June 26, 2006.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text:
(a) By September 15 of each fiscal year, the Student Aid Commission shall submit budget change proposals to the Department of Finance for inclusion in the Governor’s Budget prepared pursuant to Section 12 of Article IV of the California Constitution.

(b) The budget change proposals submitted pursuant to subdivision (a) shall include, but not be limited to, an analysis of the impact of any proposed adjustments in the distribution of funds and awards.

(c) Any supporting materials prepared for the Student Aid Commission’s consideration and public review and comment pursuant to this section, including, when it becomes available, data pertaining to the impact of any proposed adjustments on the distribution of funds and awards among income groups, ethnic groups, grade point average levels, and postsecondary education segments, shall be incorporated within the expenditure plan.

(d) If the Student Aid Commission proposes, in its budget change proposals, adjustments to the maximum grant, number of grants, and the income ceiling for grant awards made pursuant to Section 69532, at least the following factors shall be considered in determining the appropriate adjustments:

(1) The impact of inflation.

(2) The availability of financial aid from other sources for students who would qualify for a grant award.

(3) Any changes in the level of educational support provided to students at public colleges and universities in the state.

(4) The impact of proposed adjustments in the maximum grant and in the income ceiling upon the utilization of public and private postsecondary educational institutions.

(5) The number of applicants eligible to receive an award in the previous year who did not receive an award in the previous year.

history: (History: Amended by Stats. 1989, Ch. 1113, Sec. 12.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text:
(a) The commission, through an interagency agreement with the State Department of Social Services, currently operates a federally funded scholarship program, known as the Chafee Educational and Training Vouchers Program, that provides grant aid to provide access to California’s current and former foster youth to postsecondary education. Funds provided through an appropriation by the Legislature shall be supplemental to funds provided by the federal government, and are designated to ensure program availability in the absence of and before the annual receipt of federal funds for this purpose. The department shall opt in, as necessary, to expand program age eligibility of former foster youth up to 26 years of age pursuant to federal program guidelines. The department shall pursue and seek possible Chafee Educational and Training Vouchers Program federal matching dollars.

(b) Funds provided for this program shall be used to assist students who are current and former foster youth, for career and technical training or traditional college courses. The commission shall operate this program in accordance with the program instructions provided by the federal Department of Health and Human Services, Administration for Children and Families, and the program guidelines developed by the State Department of Social Services.

(c) The total amount of funding and the amount of individual awards shall depend upon the amount of federal funding provided in addition to state funding. The commission, in conjunction with the State Department of Social Services, shall determine the individual award amounts and total number of students awarded on an annual basis as the amount of total annual funding is determined.

(d) Commencing with the 2021–22 award year, the commission may make initial award offers totaling up to 200 percent of the total state and federal program funding available for all awards. Each year, the commission, in conjunction with the State Department of Social Services, shall determine the number of initial awards offered, based on the historical acceptance rate of initial awards and the size of awards, so not to exceed the total amount of available funding for the full award cycle. The commission shall make an award offer contingent upon available funding, and may adjust or withdraw an award offer before payment to ensure that total award payments do not exceed the total amount of available funding for the award cycle. The commission shall inform each recipient of an award offer that the offer may be withdrawn or adjusted before payment and that an award is payable to an eligible student only to the extent that funding is available.

(e) Commencing with the 2017–18 award year, the commission shall make a new Chafee grant award to a student only if the student attends either of the following:

(1) A qualifying institution that is eligible for participation in the Cal Grant Program pursuant to Section 69432.7.

(2) An institution that is not located in California that satisfies the provisions of subparagraphs (C) and (F) of paragraph (3) of subdivision (l) of Section 69432.7.

(f) (1) Commencing with the 2018–19 award year, the commission shall make a Chafee grant award to a student only if the student meets both of the following conditions:

(A) The student will not be 26 years of age or older by July 1 of the award year.

(B) The student attends either of the following institutions:

(i) A qualifying institution that is eligible for participation in the Cal Grant Program pursuant to Section 69432.7.

(ii) An institution that is not located in California that satisfies the provisions of subparagraphs (C) and (F) of paragraph (3) of subdivision (l) of Section 69432.7.

(2) Implementation of this subdivision is contingent upon an appropriation of sufficient funds in the annual Budget Act for this purpose.

(g) The California Community Colleges and the California State University shall, and the University of California is requested to, provide all Chafee grant recipients, upon release of the first payment, with information regarding available support services on campus and the process for completing an educational plan. In this notification, Chafee grant recipients shall be strongly encouraged to avail themselves of these services if they have not already done so.

(h) (1) (A) If a student fails to demonstrate satisfactory academic progress, as defined by the institution where the student is enrolled, for two consecutive semesters or three consecutive quarters, or an equivalent enrollment period, the student shall meet with an appropriate college staff member to develop a plan for improving academic progress or update an existing plan, in order to ensure that the student is making satisfactory progress toward completion and to receive their remaining Chafee grant funds.

(B) If a student with a plan pursuant to subparagraph (A) fails to meet satisfactory academic progress standards for a third consecutive semester or fourth consecutive quarter, or an equivalent enrollment period, the student shall meet with an appropriate college staff member to update the plan, in order to ensure that the student is making satisfactory progress toward completion and to receive their remaining Chafee grant funds.

(C) Once a plan has been developed or updated pursuant to subparagraph (A) or (B), as applicable, and submitted to the financial aid office, remaining Chafee grant funds shall be released to the student for the next applicable semester, quarter, or other period, in accordance with the existing schedule for release.

(2) A student who fails to update their plan, or who fails to meet satisfactory academic progress standards for a fourth consecutive semester or fifth consecutive quarter, or an equivalent enrollment period, shall lose Chafee grant eligibility subject to subdivision (i).

(3) For purposes of this subdivision, a college staff member who can assist a student on their plan includes an academic counselor, a Homeless and Foster Student Liaison, as described in Section 67003.5, an Extended Opportunity Programs and Services counselor, a Cooperating Agencies Foster Youth Educational Support Program counselor, a Disabled Student Programs and Services counselor, another campus-based foster youth support program staff member, or another appropriate adviser.

(4) This subdivision and subdivision (i) apply to any student who is otherwise eligible to receive a Chafee grant award pursuant to subdivision (f).

(5) The California Community Colleges, the California State University, and the University of California may use existing resources to implement this subdivision and subdivisions (g) and (i), to the extent those resources may be lawfully expended for those purposes.

(6) For purposes of this section, the definition of “satisfactory academic progress” used by the institution where the student is enrolled shall 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 that institution, and that extenuating circumstance may be considered by the institution to alter or excuse compliance with those progress requirements.

(i) A student who fails to demonstrate satisfactory academic progress, as defined by the institution where the student is enrolled, for four consecutive semesters or five consecutive quarters, or an equivalent enrollment period, shall lose eligibility for a Chafee grant, subject to the following:

(1) A student who loses eligibility may appeal the loss of the Chafee grant during any subsequent semester or quarter, or term, following the loss of eligibility.

(2) An institution shall provide a student written notice of the process for appealing the loss of a Chafee grant, regardless of whether the institution offers an appeal process for loss of other forms of financial aid.

(3) In reviewing the appeal of a student, an institution shall automatically reinstate a student’s Chafee grant eligibility if one of the following applies:

(A) The student achieves either a 2.0 GPA during the previous semester or quarter, or other applicable term, or a cumulative GPA of 2.0, even if the student did not meet the institution’s satisfactory academic progress policy requirements.

(B) The student demonstrates the existence of an extenuating circumstance that impeded successful course completion in the past but that has since been addressed such that the student is likely to demonstrate satisfactory academic progress in the future.

(C) The student provides evidence of engagement with a supportive program, either on or off campus, that is assisting the student to make continued academic progress.

(4) A student who loses Chafee eligibility by not demonstrating satisfactory academic progress and subsequently is not enrolled for one or more semesters or quarters, or another applicable term or terms, shall be eligible for a Chafee grant upon reenrollment at a qualifying institution.

(j) A student’s receipt of a Chafee grant award shall not exceed five years, which need not be consecutive.

(k) An institution shall not impose any additional eligibility criteria for a Chafee grant other than those described in this section and in Section 677(i) of Title 42 of the United States Code.

(l) Commencing with the 2018–19 award year, up to eighty thousand dollars ($80,000) of any appropriation made by the Legislature in the annual Budget Act or another statute to expand the Chafee Educational and Training Vouchers Program age eligibility of former foster youth up to 26 years of age may be used by the commission or the State Department of Social Services for outreach to newly eligible former foster youth who are at least 23 years of age, but are not yet 26 years of age, for the 2018–19 to 2020–21 fiscal years, inclusive. Outreach may include travel, material development, printing or publication, and other costs, as necessary.

(m) The commission shall annually report to the Legislature all of the following information for the preceding award year:

(1) The number of students who apply to receive a Chafee grant award.

(2) The number of Chafee grants awarded.

(3) The number of Chafee applicants denied due to either of the following reasons:

(A) The Chafee applicant no longer meets the age requirements of the program.

(B) There is insufficient proof of the Chafee applicant’s status as a current or former foster youth.

(4) The number of Chafee awardees unpaid due to any of the following reasons:

(A) Failure to meet minimum enrollment requirements.

(B) Failure to demonstrate satisfactory academic progress according to campus policy.

(C) Any other common reason that a Chafee awardee did not receive a payment.

(5) The number and age of students paid through the Chafee Educational and Training Vouchers Program.

(6) The average Chafee grant award amount.

(7) Qualifying institutions where Chafee grant awards are used.

(8) Degree levels for which Chafee grant awards are used.

(9) The amount spent on outreach and education efforts and the types of activities that the authorization in subdivision (l) funded. This information shall include the distribution of outreach funding between the commission and the State Department of Social Services, and any other entity that was involved.

history: (History: Amended by Stats. 2020, Ch. 285, Sec. 2. (AB 2416) Effective January 1, 2021.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text:
(a) It is the intent of the Legislature to clarify educational policies for purposes of improving access for low-income students to the CalFresh program established pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of Division 9 of the Welfare and Institutions Code.

(b) For purposes of Section 273.5(a) of Title 7 of the Code of Federal Regulations, a student shall be determined to be attending at least half-time any semester or term in which the student enrolls in at least one-half of the number of credits needed each semester or term to graduate within four years of enrollment as a first-time freshman, or within two years of enrollment as a transfer student, unless prohibited by federal law.

(c) The commission shall notify, in writing, a recipient of a Cal Grant award whose grant includes any amount of funding that has been derived from the Temporary Aid to Needy Families (TANF) block grant or state match in order for the student to verify that the student qualifies for the exemption from the CalFresh program student eligibility rules provided for in Section 273.5(b) of Title 7 of the Code of Federal Regulations.

(d) (1) To the extent the commission is permitted by federal law to use information to determine a student’s CalFresh eligibility and possesses the pertinent information, the commission shall notify students of their exemption from the CalFresh program student eligibility rules provided for in Section 273.5(b) of Title 7 of the Code of Federal Regulations and their potential eligibility for CalFresh benefits.

(2) The notification provided in paragraph (1) shall be considered the verification of the student’s exemption from the CalFresh program student eligibility rules provided for in Section 273.5(b) of Title 7 of the Code of Federal Regulations, as specified in the notice for purposes of qualifying for the CalFresh program.

(e) The commission shall not be required to provide more than one written notification under this section to a student who is eligible for notification under subdivision (c) or (d).

(f) The commission shall confer with stakeholders on at least an annual basis to implement this section and continuously improve the process of securing CalFresh benefits for eligible students.

history: (History: Amended by Stats. 2022, Ch. 167, Sec. 1. (SB 20) Effective January 1, 2023.)

title: 3. POSTSECONDARY EDUCATION

article: 2. The Student Aid Commission


text:
(a) The Legislature finds and declares both of the following:

(1) The student loan guarantee business is not a core mission of government. Recognition of this fact led, in 1996, to the approval of the establishment of an auxiliary organization for the purpose of providing operational and administrative services for the Student Aid Commission’s participation in the Federal Family Education Loan Program.

(2) Pursuant to that authority, an auxiliary organization was established to provide, pursuant to contract, certain services to the Student Aid Commission.

(b) It is the intent of the Legislature that the value of the auxiliary organization’s arrangement with the Student Aid Commission and the Student Aid Commission’s participation in the Federal Family Education Loan Program be maximized through either of the following:

(1) The sale of the state’s interest in the student loan guarantee portfolio of the Student Aid Commission and certain related assets and liabilities of the student loan guarantee program operated by the Student Aid Commission, to a firm approved to act as a state student loan guarantee agency for the Federal Family Education Loan Program by the Secretary of Education.

(2) The entry into an arrangement for the operation of the state student loan guarantee program by an entity meeting the financial and compliance standards established for the Federal Family Education Loan Program.

history: (History: Added by Stats. 2007, Ch. 182, Sec. 1. Effective August 24, 2007.)

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 2.4. Maximizing the Value of the State Student Loan Guarantee Program Assets and Liabilities


text:
For the purposes of this article, all of the following definitions apply:

(a) “Auxiliary organization” means the organization established pursuant to Article 2.5 (commencing with Section 69522).

(b) “Director” means the Director of Finance.

(c) “Federal Family Education Loan Program” means the program established pursuant to Part B (commencing with Section 1071) of Subchapter IV of Chapter 28 of Title 20 of the United States Code, and includes, but is not necessarily limited to, the Stafford and PLUS loan programs.

(d) “Federal Student Loan Reserve Fund” means the fund of that name established pursuant to Section 69766.

(e) “Operating agreement” means the agreement entered into between the Student Aid Commission and the auxiliary organization pursuant to Section 69522.

(f) “Secretary of Education” means the United States Secretary of Education and the Secretary of Education acting through the United States Department of Education.

(g) “State student loan guarantee program” means the activities performed by the Student Aid Commission as a state student loan guarantee agency pursuant to Public Law 94-482, and subsequent federal regulations, as authorized pursuant to Article 13 (commencing with Section 69760) or on behalf of the Student Aid Commission by the auxiliary organization.

(h) “State student loan guarantee program assets” means all of the assets of the state student loan guarantee program held by the Student Aid Commission and all assets of the auxiliary organization, tangible and intangible, including, without limitation, the state’s interest in all loan guarantee contracts and agreements, the funds deposited in the Student Loan Operating Fund other than federal funds, all funds held by the auxiliary organization other than federal funds, and the state’s interest in any leases of real property or equipment entered into by the auxiliary organization. These assets shall not include any property of the United States held by the Student Aid Commission or the auxiliary organization, as determined pursuant to Public Law 94-482, or subsequent federal regulations.

(i) “State student loan guarantee program liabilities” means all of the liabilities of the state student loan guarantee program as determined by the Director of Finance.

(j) “Student Loan Operating Fund” means the fund of that name established by Section 69766.

(k) “Transferee guarantee agency” means an alternative student loan guarantee agency for the Federal Family Education Loan Program that is the purchaser of the state student loan guarantee program assets and liabilities.

(l) “Transferee guaranty program operator” means the entity with which the state enters into an arrangement for the operation of the state student loan guarantee program pursuant to this article.

(m) “Treasurer” means the State Treasurer.

title: 3. POSTSECONDARY EDUCATION

article: 2.4. Maximizing the Value of the State Student Loan Guarantee Program Assets and Liabilities


text:
(a) The Director of Finance is hereby authorized to act as agent for the state and, in that capacity, to sell the state student loan guarantee program assets and liabilities not retained by the Student Aid Commission to an entity that the director, in consultation with the Treasurer, determines will provide the best combination of each of the following:

(1) The highest price for those state student loan guarantee program assets and liabilities.

(2) The greatest security for the payment of the purchase price.

(3) Demonstrated competence and professional qualifications necessary for the continued satisfactory performance of student loan guarantee services.

(4) The approval of the Secretary of Education.

(5) The quality of student services offered, including, but not necessarily limited to, borrower training in budgeting and financial management, including debt management and other forms of financial literacy.

(6) Borrower transparency or disclosure policies for products or services, or both, offered to students outside of the federal student loan programs.

(b) Notwithstanding any other provision of law, the sale process shall include the steps the director, in consultation with the Treasurer, deems necessary or convenient to achieve the ends set forth in this section. The process shall include, but not necessarily be limited to, all of the following:

(1) The satisfaction of criteria established by the director, in consultation with the Treasurer, consistent with achieving a combination of the best price for those state student loan guarantee program assets and liabilities and the continued operation of student loan guarantee services for California under the Federal Family Education Loan Program. These criteria shall include any pertinent requirements of the Secretary of Education.

(2) A Notice of Request for Qualifications sent by the Director of Finance to each firm currently acting as a state student loan guarantee agency under the Federal Family Education Loan Program and any entity proposed by the Secretary of Education, and advertised in the State Contracts Register pursuant to Sections 14827.1 and 14827.2 of the Government Code. This notice shall include a description of the state student loan guarantee program, a summary description of the state student loan guarantee program assets and liabilities offered for sale, and a description of the due diligence review process to provide potential purchasers with further information regarding the state student loan guarantee program assets and liabilities offered for sale, the selection criteria on which the transaction will be based, the submission requirements and deadlines, and a Department of Finance contact name and telephone number for more information. A copy of the Notice of Request for Qualifications shall be provided to the Joint Legislative Budget Committee within seven days of transmittal to state student loan guarantee agencies.

(3) The evaluation by the director, in consultation with the Treasurer, of all statements timely submitted in response to the Notice of Request for Qualifications sent pursuant to paragraph (2), using the criteria contained in the notice, and, based on those statements, the establishment of a qualified purchasers list.

history: (History: Amended by Stats. 2008, Ch. 757, Sec. 24. Effective September 30, 2008.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) If, after seeking the advice of, and in active participation with, the Treasurer, the Director of Finance determines that an alternative arrangement to the sale of the state student loan guarantee program assets and liabilities may be financially beneficial to the state, the Director of Finance is also hereby authorized to enter into an arrangement other than that authorized in Section 69521.3, for the purpose of maximizing the value of the state student loan guarantee program assets and liabilities. This arrangement may take any form the director, in consultation with the Treasurer, deems advisable to provide the best combination of each of the following:

(1) The greatest value to the General Fund.

(2) The greatest financial security for achieving value to the General Fund.

(3) The continued satisfactory performance of student loan guarantee services.

(4) The approval of the United States Secretary of Education, to the extent required by Public Law 94-482, or subsequent federal regulations.

(5) The quality of student services offered, including, but not necessarily limited to, borrower training in budgeting and financial management, including debt management and other forms of financial literacy.

(6) Borrower transparency or disclosure policies for products or services, or both, offered to students outside of the federal student loan programs.

(b) Notwithstanding any other provision of law, this process shall include the steps the Director of Finance, in consultation with the Treasurer, deems necessary or convenient to achieve the ends set forth in this section. The process shall include, but not necessarily be limited to, all of the following:

(1) The satisfaction of the established criteria consistent with achieving a combination of the greatest value to the General Fund and the continued operation of student loan guarantee services for California under the Federal Family Education Loan Program. The criteria shall include any pertinent requirements of the Secretary of Education.

(2) A Notice of Request for Qualifications sent by the director to each nonprofit entity currently acting as a state student loan guaranty agency under the Federal Family Education Loan Program, any entity known to the director to be acting as a servicing agent for a state student loan guaranty agency, and any nonprofit entity proposed by the Secretary of Education, and advertised in the State Contracts Register pursuant to Sections 14827.1 and 14827.2 of the Government Code. The notice shall include a description of the state student loan guarantee program, a summary description of the state student loan guarantee program assets and liabilities, and a description of the due diligence review process to provide further information regarding the state student loan guarantee program assets and liabilities, the selection criteria on which the transaction will be based, submission requirements and date, and a Department of Finance contact name and phone number for more information. A copy of the Notice of Request for Qualifications shall be provided to the Joint Legislative Budget Committee within seven days of transmittal to state student loan guarantee agencies.

(3) The evaluation by the director, in consultation with the Treasurer, of all statements timely submitted in response to the Notice of Request for Qualifications, using the criteria contained in the notice, and, based on the statements, the establishment of a qualified purchasers list.

history: (History: Amended by Stats. 2008, Ch. 757, Sec. 25. Effective September 30, 2008.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The Director of Finance is authorized to take all actions that he or she deems to be necessary or convenient to accomplish any of the following:

(1) To preserve the state student loan guarantee program assets, pending consummation of their sale or the consummation of any other transaction, to maximize the value of the state student loan guarantee program to the state, including, without limitation, as authorized in Sections 69522, 69526, and 69766.

(2) To engage in negotiations with, and provide sufficient information regarding the state student loan guarantee assets and liabilities to, potential purchasers or any potential transferee guaranty program operator.

(3) To either consummate the sale of, and transfer, the state student loan guarantee program assets and liabilities not retained to the Student Aid Commission to the transferee guarantee agency, or to consummate the agreement with the transferee guaranty program operator.

(4) To seek and negotiate with the United States Secretary of Education the designation of any alternative state student loan guarantee agency for California under the Federal Family Education Loan Program or the approval of the Secretary of Education of any transferee guaranty program operator to the extent required by Public Law 94-82, or subsequent federal regulations.

(5) To transfer the Federal Student Loan Reserve Fund to any transferee guaranty agency in a manner that is consistent with the intentions of the United States Secretary of Education.

(6) To transfer any of the state student loan guarantee program assets in the form of cash or investments not transferred to any transferee guaranty agency or transferee guarantee program operator directly to the General Fund.

(7) To retain any state student loan guarantee program assets determined by the director to be necessary or appropriate for the purposes of the Student Aid Commission.

(b) In order to accomplish the purposes of this article, the Director of Finance shall do all of the following:

(1) Notify the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the Senate and Assembly Budget Committees of the determination of the Director of Finance to proceed with a transaction other than the sale of the state student loan guarantee program assets and liabilities pursuant to Section 69521.3, providing that notice no later than 30 days prior to the consummation of the transaction with the transferee guarantee program operator.

(2) Upon the consummation of the sale of the state student loan guarantee program assets to a transferee guaranty agency, the Director of Finance shall notify the Secretary of State and the Chairperson of the Joint Legislative Budget Committee.

(3) Upon the consummation of a transaction authorized by this article with a transferee guarantee program operator, the Director of Finance shall notify the Secretary of State and the Chairperson of the Joint Legislative Budget Committee.

(c) In order to accomplish the purposes of this article:

(1) The Student Aid Commission shall cooperate fully with the Director of Finance and, in particular, take all steps to preserve the state student loan guarantee program assets deemed necessary or convenient by the Director of Finance, including, without limitation, as set forth in Sections 69522, 69526, and 69766.

(2) The Student Aid Commission shall direct the auxiliary organization to cooperate fully with the director.

(3) Until the consummation of the sale or other transaction to maximize the value of the state student loan guarantee program to the state, all of the actions, approvals, and directions of the Student Aid Commission affecting the state student loan guarantee program shall be effective only upon the approval of the Director of Finance.

(4) Notwithstanding any provision of the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code), the auxiliary organization shall, as directed by the Student Aid Commission under paragraph (2), cooperate fully with the Director of Finance.

history: (History: Amended by Stats. 2008, Ch. 757, Sec. 26. Effective September 30, 2008.)

title: 3. POSTSECONDARY EDUCATION


text: Notwithstanding any other provision of law, neither the approval of the Attorney General nor of the Director of General Services is required for the execution and implementation of the sale, lease, conveyance, exchange, transfer, or other disposition of the auxiliary organization, any state student loan guarantee program assets or liabilities held by the auxiliary organization, or any sale or other arrangement authorized by this article.

title: 3. POSTSECONDARY EDUCATION


text: The state student loan guarantee program assets and liabilities shall be transferred to the transferee guarantee agency upon the completion of any sale pursuant to this article, and may be transferred to the transferee guaranty program operator if contemplated by the transaction entered into pursuant to Section 69521.4.

title: 3. POSTSECONDARY EDUCATION


text:
(a) The Director of Finance shall deposit all proceeds of any sale of, or any funds achieved through any other arrangement to maximize the value of, the state student loan guarantee program assets and liabilities under this article, net of any costs related to that transaction, into the General Fund.

(b) The proceeds of any sale of, or any funds achieved through any other arrangement to maximize the value of, the state student loan guarantee program assets and liabilities are not “proceeds of taxes” as that term is used in subdivision (c) of Section 8 of Article XIIIB of the California Constitution. The disbursement of these proceeds is not subject to the limitations imposed by that article.

title: 3. POSTSECONDARY EDUCATION


text:
(a) Notwithstanding any other provision of law, the Director of Finance is authorized to enter into an agreement with a firm or individual to act as an advisor to the state in the transactions contemplated by this article. Section 14838 of the Government Code and Article 4 (commencing with Section 10335) of Chapter 2 of Part 2 of Division 2 of the Public Contract Code does not apply to any agreement entered into by the director with an advisor pursuant to this section.

(b) Notwithstanding any other provision of law, the Director of Finance is also authorized to enter into a legal services agreement to obtain specialized legal advice related to the transactions contemplated by this article. Section 11040 of the Government Code and Section 6072 of the Business and Professions Code shall not apply to the legal services agreement entered into by the director pursuant to this section.

title: 3. POSTSECONDARY EDUCATION


text:
(a) The Director of Finance, in consultation with the Treasurer, shall select a firm or individual to provide advisory services based on demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required, in the manner described in this section.

(b) The Director of Finance and the Treasurer shall establish selection criteria for selecting an advisor. The criteria may include, but are not necessarily limited to, factors such as professional excellence, demonstrated competence, specialized experience in performing similar services, education and experience of key personnel to be assigned, staff capability, ability to meet schedules, nature and quality of similar completed work of the firm or individual, reliability and continuity of the firm or individual, and other considerations deemed by the director and the Treasurer to be relevant and necessary to the performance of advisory services.

(c) The Director of Finance, for the purposes of obtaining services under this section, shall send a Notice of Request for Qualifications to firms and individuals in the underwriter and financial advisor pools of the Treasurer. The director shall publish this notice in the State Contracts Register pursuant to Sections 14827.1 and 14827.2 of the Government Code. The notice shall include a description of the advisory services required, the selection criteria based on which the contract award will be made, submission requirements and deadlines, and a Department of Finance contact name and telephone number for more information. A copy of the Notice of Request for Qualifications shall be provided to the Joint Legislative Budget Committee within seven days of publication in the State Contracts Register.

(d) (1) After the final response date stated in the Notice of Request for Qualifications, the Director of Finance and the Treasurer shall review the responses submitted, and shall evaluate them using the criteria contained in the notice. The director and the Treasurer shall rank, in order of preference based on the criteria contained in the notice, the firm or individuals determined to be qualified to perform the required services.

(2) The Director of Finance and the Treasurer, or their designees, may interview any of the qualified firms or individuals regarding the experience and qualifications of those firms or individuals, as well as anticipated concepts and the benefits of alternative methods of furnishing the required services.

(e) (1) Following the interviews, if any, held pursuant to subdivision (d), the Director of Finance and the Treasurer shall adjust the ranking of the qualified individuals or firms to reflect those firms or individuals deemed to be the most highly qualified to perform the required services.

(2) The Director of Finance, in consultation with the Treasurer, shall enter into negotiations with the firm or individual most highly ranked pursuant to paragraph (1). If negotiations are concluded successfully, the director shall enter into a contract. If the director, in his or her sole discretion, concludes that the negotiations are unsuccessful, the director shall terminate the negotiations, and begin new negotiations, in consultation with the Treasurer, with the other firms or individuals ranked pursuant to paragraph (1) in order of their ranking, and either contract with or terminate negotiations with each next most highly ranked firm or individual.

(3) If, after pursuing the negotiation process set forth in paragraph (2), the Director of Finance has been unable to negotiate a satisfactory contract at fair and reasonable compensation, the director may reinstitute the selection process prescribed in this section, commencing with the issuance of a new Notice of Request for Qualifications.

(4) The Director of Finance shall notify the Joint Legislative Budget Committee in writing within seven days of entering into a contract with an individual or firm pursuant to paragraph (2).

history: (History: Amended by Stats. 2008, Ch. 757, Sec. 27. Effective September 30, 2008.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The Director of Finance shall notify the Joint Legislative Budget Committee in writing upon his or her determination that neither the sale nor any other transaction authorized by this article is anticipated to achieve the purposes of this article.

(b) The Director of Finance shall cease those activities he or she is authorized or directed to undertake pursuant to this article and Sections 69522, 69526, and 69766 upon the earlier of:

(1) The 30th day following written notice by the director to the Chairperson of the Joint Legislative Budget Committee pursuant to subdivision (a).

(2) January 10, 2011.

history: (History: Amended by Stats. 2008, Ch. 757, Sec. 28. Effective September 30, 2008.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) It is the intent of the Legislature that California students with financial need be made aware of the opportunities afforded to them through the various state and federal financial aid programs, including the Cal Grant Program established pursuant to Chapter 1.7 (commencing with Section 69430).

(b) Since the creation of the Cal Grant A and Cal Grant B entitlement programs under Article 2 (commencing with Section 69434) of, and Article 3 (commencing with Section 69435) of, Chapter 1.7, efforts to provide information to students have been developed and implemented by various organizations and institutions. However, there is a need to consolidate, incorporate, expand, and improve these programs as a statewide effort in order to ensure access to workshops, information, and assistance.

history: (History: Added by Stats. 2007, Ch. 741, Sec. 1. Effective January 1, 2008.)

title: 3. POSTSECONDARY EDUCATION

article: 3.5. Cash for College Program

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 3.5. Cash for College Program


text:
(a) The Legislature finds and declares all of the following:

(1) The Cash for College Program has successfully established local regional partnerships that annually provide hands-on help in filling out financial aid forms necessary to receive financial assistance for college. This program was initiated by private foundations and the commission in 2002 with the goal of increasing the number of students who successfully complete the financial aid process and enroll in college. In 2007, the Cash for College Program succeeded in serving over 20,000 students and their families in 44 of the 58 counties in California, thereby helping the state to access tens of millions of dollars in federal Pell Grant financial aid for low-income students and increasing the number of students participating in the Cal Grant Program.

(2) The intersegmental cooperative nature of the Cash for College Program has proved to be a highly effective mechanism to coordinate existing services and foster the cooperation of the various educational segments, community, and business partners involved.

(3) The Cash for College Program has been successful because of the financial and volunteer contributions of local partners in private business and industry, the financial aid, admissions, and outreach communities, and student groups. Additional funding has been provided through these local and regional partnerships, and through one million five hundred thousand dollars ($1,500,000) in private foundation grant funds that have supported the initial development of the program, and funded local scholarships offered to workshop participants who complete the financial aid process by the state filing deadline.

(4) The Cash for College Program has assisted high school and community college students whose families were unfamiliar with the financial aid process. The program focuses on assisting students and their families who are first- or second-generation college-bound students who have little or no access to college advising because of limited resources at the schoolsite or the perception that college is not an option.

(5) The Cash for College Program seeks to provide all California students who desire to attend college the opportunity to enroll by providing tangible assistance in accessing the available state and federal resources to make higher education possible.

(6) A college or postsecondary education is a requirement for a working wage job. The wage disparity between a high school graduate and a college graduate is one million dollars ($1,000,000) over an individual’s lifespan.

(7) California reflects the ethnic and cultural diversity of today’s world. Evidence of this change is most pronounced within our public elementary and secondary education system. As California continues into the 21st century, there is no single group that represents a majority of elementary and secondary enrollment. These changing demographics present great challenges and great opportunities.

(8) California must invest in higher education and in the future of its young people so they can acquire skills and knowledge necessary to continue the state’s economic recovery.

(9) The Cash for College Program provides access to the college financial aid process for students of varied backgrounds and socioeconomic status.

(b) (1) Beginning January 1, 2008, the Cash for College Program is established and is administered by the commission, in partnership with private business and industry and local community and educational organizations. The commission may allocate funds for support of local Cash for College financial aid workshop efforts that are designed to accomplish the following goals:

(A) Targeted outreach to, and assistance for, low-income and first-generation college-bound students with state and federal financial aid applications.

(B) Targeted outreach to, and assistance for, students who are enrolled in schools or geographic regions with low college eligibility or participation rates, with state and federal financial aid applications.

(2) The projects and organizations funded under this article shall implement all of the following activities:

(A) Organize and conduct free local and regional workshops that help students and families to fill out the Free Application for Federal Student Aid (FAFSA) and the Cal Grant grade point average verification form required for Cal Grants.

(B) Convene advisory board meetings to develop regional partnerships with local partners in private business and industry, admissions and outreach communities, and student groups, to foster financial and volunteer contributions.

(c) The commission shall, by December 1 of each year, provide a report to the fiscal and policy committees of the Legislature on the Cash for College Program detailing program data, expenditures, and the findings of an independent evaluation on the extent to which program goals have been met. Program data shall include the number of completed FAFSA applications, the number of submitted grade point average verifications, and the number of Cal Grant recipients using their Cal Grant awards at California postsecondary institutions.

(d) The commission shall contract with an external evaluator to conduct the independent evaluation.

(e) (1) The commission may accept voluntary contributions or donations in cash to pay for the costs of implementing the program pursuant to this article. Voluntary contributions shall be deposited into the Cash for College Fund, which is hereby created in the State Treasury. Only moneys contributed or donated for the purposes of this article may be deposited into the fund. The fund shall be credited with all investment income earned by moneys in the fund. The moneys received in contributions or donations for the purposes of this article are not part of the General Fund as defined in Section 16300 of the Government Code. Voluntary contributions or donations are special funds held in trust for purposes of meeting the purposes of this article. Notwithstanding Section 13340 of the Government Code, moneys in the fund from voluntary contributions or donations are hereby continuously appropriated to the commission without regard to fiscal year for the purposes enumerated in this article.

(2) Additional funds may be appropriated in the annual Budget Act for the purposes of this article.

(f) (1) As used in this subdivision, “regional coordinating organization” means a coalition of entities led by a designated organization, which may include nonprofit organizations, local education or other government agencies, or public or private higher education institutions.

(2) The commission shall allocate funds to regional coordinating organizations to plan, coordinate, or conduct Cash for College workshop series within specified regions within the state.

(3) The commission shall require a regional coordinating organization to contribute equal or greater resources to match the Cash for College funds allocated to it by the commission. Funds allocated to a regional coordinating organization under this subdivision shall be based on demonstrated ability to contribute equal or greater matching resources or funds. The commission may require advance payment, if it determines that it is necessary to ensure that funds provided pursuant to this article are available each year before the start of the program.

(4) The commission may partner with regional coordinating organizations or other entities to facilitate additional nonstate funding or donations of property, or both, for the Cash for College Program.

(5) Notwithstanding Section 11005 of the Government Code, the commission may accept gifts of personal property without approval of the Director of Finance.

(6) In addition to the projects and organizations funded pursuant to this article, an organization that is not part of a regional coordinating organization, including high schools and community-based organizations, but has a written partnership agreement with the commission or a regional coordinating organization, may offer free local and regional workshops through the Cash for College Program.

(g) The commission may use the moneys appropriated for the program, including reasonable administrative costs, marketing, and external evaluation. Administrative costs shall include appropriate staffing to support the program, including, but not limited to, a Cash for College coordinator. The commission shall annually establish the total amount of funding to assist regional coordinating organizations. Allocation of funds shall be established based upon the best use of funding for that year, as determined by the commission in consultation with a Cash for College statewide advisory board that may include, but is not limited to, partners in private business and industry, admissions, outreach communities, and student groups.

history: (History: Amended by Stats. 2023, Ch. 188, Sec. 5. (SB 886) Effective January 1, 2024.)

title: 3. POSTSECONDARY EDUCATION

article: 3.5. Cash for College Program


text:
The Legislature finds and declares all of the following:

(a) Lack of information about postsecondary educational opportunities and financial aid are primary barriers to postsecondary education for pupils from schools that have low college eligibility and participation rates.

(b) Since its inception in 1978, the California Student Opportunity and Access Program (Cal-SOAP) has focused on increasing the availability of information and improving college access to postsecondary education for historically underserved student populations by creating a college-going culture, focusing on financial aid application completion, and coordinating student outreach efforts.

(c) The intersegmental consortium nature of the program has proven to be a highly effective mechanism in coordinating existing services and in fostering the cooperation of the various education segments and partner organizations involved.

(d) An essential core of state funding for the program is required to maintain its intersegmental character, which has generated better communication, understanding, and teamwork resulting in a high-impact collective effort, while minimizing duplication of services in a geographic area.

(e) Research demonstrates that many students do not have the financial means to cover the increasing costs of postsecondary education or access to adequate financial aid. Cal-SOAP projects assist pupils in becoming knowledgeable about education costs and financing options, including student financial aid, as they prepare to attain a postsecondary education.

(f) Cal-SOAP projects employ college students from historically underserved communities to serve as college success coaches. This is a cost-effective method to provide information and assistance regarding postsecondary education costs and financial aid opportunities to pupils from schools that have low postsecondary education eligibility and participation rates.

(g) Awareness of financial aid options has historically been a barrier for first-generation students and students from minority backgrounds trying to access a postsecondary education. Research shows that students are widely unaware of their financial aid options and have misconceptions of financial aid eligibility, leading many to not complete the financial aid process.

(h) The COVID-19 health pandemic has only exacerbated the challenges associated with declining rates of postsecondary education enrollment and financial aid application submissions for low-income and first-generation students. Students are in dire need of information and support to help them navigate the college-going process during these uncertain times.

(i) There is a critical need to modernize Cal-SOAP to focus on providing financial aid information and assistance with completing the Free Application for Federal Student Aid (FAFSA) and the California Dream Act Application (CADAA) to promote college opportunities for low-income and underserved students. Additionally, project staff assist students and families with overall financial aid literacy to help them make the best possible decisions in financing their postsecondary education.

history: (History: Amended by Stats. 2021, Ch. 575, Sec. 2. (SB 737) Effective January 1, 2022.)

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 4. California Student Opportunity and Access Program


text:
As used in the article, the following definitions apply:

(a) “CADAA” means the California Dream Act Application.

(b) “Cal-SOAP” means the California Student Opportunity and Access Program.

(c) “FAFSA” means the Free Application for Federal Student Aid.

(d) “Local educational agency” means a school district, county office of education, or charter school.

(e) “Public postsecondary educational institution” means a campus of the University of California, the California State University, or the California Community Colleges.

history: (History: Added by Stats. 2021, Ch. 575, Sec. 3. (SB 737) Effective January 1, 2022.)

title: 3. POSTSECONDARY EDUCATION

article: 4. California Student Opportunity and Access Program


text:
(a) The California Student Opportunity and Access Program is administered by the commission.

(b) (1) The commission may apportion funds on a progress payment schedule for the support of projects designed to increase the accessibility of postsecondary educational opportunities and financial aid for pupils from underserved communities who meet one or more of the following criteria:

(A) Pupils who are from low-income families.

(B) Pupils who would be the first in their families to attend a postsecondary educational institution.

(C) Pupils who are from schools or geographic regions with documented low postsecondary education eligibility or participation rates.

(D) Pupils who are homeless youth and former homeless youth, as defined in subdivision (b) of Section 66025.9, or who are at risk of becoming homeless.

(E) Pupils who are from mixed immigration status households or who themselves are immigrants.

(F) Pupils who are current or former foster youth. As used in this paragraph, “current or former foster youth” means a person whose dependency was established or continued by the court on or after the date on which the person reached 13 years of age.

(G) Pupils who identify as being LGBTQ+.

(H) Pupils who have a disability.

(I) Pupils who are part of a historically underserved minority group.

(2) The commission shall allocate up to 2 percent of funding appropriated for this program for program administration, data collection, and evaluation. Any funds allocated for these purposes are not subject to the match funding requirements of this article.

(c) These projects shall primarily do all of the following:

(1) Increase the availability of information for these pupils on the existence of postsecondary education, the total cost of attending a postsecondary educational institution, and financing options, including grants, scholarships, student loans, and work opportunities.

(2) Increase the number of pupils submitting completed financial aid applications, including the FAFSA or the CADAA, and assist pupils as needed with the financial aid verification process.

(3) Hire undergraduate or graduate students to serve as college success coaches to actively mentor pupils, encourage a college-going culture, help pupils plan for their postsecondary education, and help pupils complete a FAFSA or a CADAA for financial aid consideration. Projects should aim to hire college success coaches with similar backgrounds as pupils described in paragraph (1) of subdivision (b).

(d) Projects may assist community college students in transferring to four-year postsecondary educational institutions, and students in their first year at four-year postsecondary educational institutions, to the extent that project resources are available.

(e) Projects may provide assistance to middle school pupils described in paragraph (1) of subdivision (b) and their parents or guardians by implementing outreach efforts designed to inform them of the future availability of and access to postsecondary education financial assistance as a means of motivating pupils to stay in school and complete college preparatory courses.

(f) Projects shall provide assistance to high school pupils described in paragraph (1) of subdivision (b) and their parents or guardians by providing information on college preparation and on understanding the total cost of attending a postsecondary educational institution, and by assisting with completion of financial aid applications. Projects are encouraged to leverage commission outreach efforts, such as Cash for College workshops, to assist their students with completing the FAFSA or the CADAA.

(g) Projects shall promote the value of career technical education, available career programs in public schools and postsecondary segments with sequenced courses beginning in high school and continuing into postsecondary education, and the resulting career opportunities.

(h) Each project shall establish or strengthen regional collaborative relationships and partnerships. Each project shall be proposed and operated through a consortium that involves at least one secondary school district office, at least one four-year college or university, at least one community college, and at least one of the following agencies:

(1) A nonprofit educational, counseling, or community agency.

(2) A private vocational or technical school accredited by a national, state, or regional accrediting association recognized by the United States Department of Education.

(i) (1) The commission, in awarding initial project grants, shall give priority to the following proposals:

(A) Proposals developed by more than three eligible agencies.

(B) Proposals in counties in which a four-year public postsecondary educational institution is not headquartered.

(2) Projects shall be located throughout the state in order to provide access to program services in rural, urban, and suburban areas.

(j) The governing board of each project, composed of at least one representative from each entity in the consortium, shall establish management policy, approve and provide direction to the project director, set priorities for budgetary decisions that reflect the specific needs of the project, and assume responsibility for maintaining the required level of matching funds, including solicitations from the private sector and corporate sources.

(k) Before receiving a project grant, each consortium shall conduct a planning process and submit a comprehensive project proposal to include, but not be limited to, the following information:

(1) The agencies participating in the project.

(2) The pupils to be served by the project.

(3) The ways in which the project will reduce duplication and related costs.

(4) The methods for assessing the project’s impact.

(l) Each project shall include the direct involvement of secondary school staff in the daily operations of the project, with preference in funding to those projects that effectively integrate the objectives of Cal-SOAP with those of the school district in providing services that are essential to preparing pupils for postsecondary education.

(m) (1) Each project shall maintain a comprehensive pupil data system on pupils receiving services through the program in middle and high school within the participating districts. This information shall be maintained in a manner consistent with the law relating to pupil records. For purposes of assessing financial aid completion and evaluating program effectiveness, the commission shall require each project to submit on a periodic basis to the commission or a commission grantee designee certain outreach metrics for the purpose of evaluating the effectiveness of the program and the project. The following outreach metrics shall be reported:

(A) Individual student level data, including specification of each target population described in paragraph (1) of subdivision (b) that includes the student, for the following:

(i) High school graduates not described in clause (ii) or (iii) who were eligible for admission to a public postsecondary educational institution.

(ii) Students not described in clause (iii) who applied for admission at a public postsecondary educational institution.

(iii) Students who enrolled at a public postsecondary educational institution.

(B) Disaggregated data based on target populations described in paragraph (1) of subdivision (b) for the following:

(i) Students that received Cal-SOAP services.

(ii) Pupils that completed the FAFSA.

(iii) Pupils that completed the CADAA.

(2) For the purposes and facilitation of the evaluation of the programs and the projects funded pursuant to this article, project grantees, local educational agencies, the department, the University of California, the California State University, the California Community Colleges, and the commission may share student data, including personally identifiable information, with one another, including, but not necessarily limited to, information on pupils in grades 11 and 12 and students who have applied to a public postsecondary educational institution, for the purposes of outreach, completion of FAFSA and CADAA applications, and verification of application to and enrollment in a public postsecondary educational institution.

(3) Information shared under this subdivision shall be handled in compliance with all applicable state and federal privacy laws, including the federal Family Educational Rights and Privacy Act of 2001 (20 U.S.C. Sec. 1232g).

(n) At least 30 percent or the equivalent of each project grant shall be allocated for stipends to college success coaches and for any costs associated with providing training or necessary supplies and equipment to the college success coaches who meet all of the following criteria:

(1) Work with middle and high school pupils.

(2) Are currently enrolled in a college or other postsecondary educational institution as an undergraduate or graduate student.

(3) Have demonstrated financial need, as defined by the commission, for the stipend.

(o) Each project should work cooperatively with other projects in the program and with the commission to establish viable student services and sound administrative procedures, and to ensure coordination of the activities of the project with existing educational opportunity programs.

(p) Surveys and other means developed by the projects may be used for purposes of students self-identifying the target populations described in paragraph (1) of subdivision (b) in which they are included. The surveys or other means established by the projects may be used instead of students providing documentation verifying the target populations described in paragraph (1) of subdivision (b) in which they are included.

(q) The commission may adopt regulations necessary for the implementation and evaluation of this program and individual projects.

history: (History: Amended by Stats. 2021, Ch. 575, Sec. 4. (SB 737) Effective January 1, 2022.)

title: 3. POSTSECONDARY EDUCATION


text:
The Student Aid Commission shall establish a 12-member project grant advisory committee to advise project directors and the commission on the development and operation of the projects, and consisting of the following:

(a) Three representatives of outreach programs, representing the University of California, the California State University, and the California Community Colleges, appointed by their respective governing boards.

(b) One representative of private colleges and universities, appointed by the Association of California Independent Colleges and Universities.

(c) Two secondary school staff, appointed by the Superintendent of Public Instruction.

(d) Two persons representing the general public, one appointed by the Speaker of the Assembly and the other by the Senate Rules Committee.

(e) Two postsecondary students, both appointed annually by the commission.

(f) Two college campus financial aid officers, appointed by the commission.

history: (History: Amended by Stats. 2018, Ch. 505, Sec. 10. (AB 3255) Effective January 1, 2019.)

title: 3. POSTSECONDARY EDUCATION


text: Allocation of any funds appropriated for purposes of this article shall be limited to those consortia meeting requirements of this article who will provide equal matching resources from existing or budgeted increases in federal, state, local, and private funds. It shall be the goal of the program that the total resources provided by Cal-SOAP shall match state funding on at least a 1.5 to 1 ratio. Any new projects approved through expansion of the program shall provide equal matching resources for the first three years of operation and shall be encouraged to increase the matching resources to a 1.5 to 1 ratio with the state grant thereafter.

history: (History: Amended by Stats. 2021, Ch. 575, Sec. 5. (SB 737) Effective January 1, 2022.)

title: 3. POSTSECONDARY EDUCATION


text: Contingent upon sufficient funding provided for this purpose in the annual Budget Act or other statute, the commission shall ensure that at least one consortium is established, in accordance with Section 69561, to serve the pupils of Orange County. The commission shall retain authority over a consortium established pursuant to this section.

history: (History: Added by Stats. 2017, Ch. 500, Sec. 1. (AB 584) Effective January 1, 2018.)

title: 3. POSTSECONDARY EDUCATION


text: It is the intent of the Legislature that funding for the purposes of this article be appropriated in the annual Budget Act.

history: (History: Amended by Stats. 1998, Ch. 626, Sec. 6. Effective January 1, 1999.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The Legislature finds and declares all of the following:

(1) The growing shortage of high-quality teachers is most serious in particular subject areas, partly due to the shortage of students in these fields who enter the teaching profession.

(2) Many school districts have difficulty recruiting and retaining high-quality teachers for schools ranked in decile 1 or 2 on the Academic Performance Index, for pupils with special needs, for schools serving rural areas or large populations of pupils from low-income and linguistic minority families, and for schools with a high percentage of teachers holding emergency-type permits.

(3) The rising costs of higher education, coupled with a shift in available financial aid from scholarships and grants to loans, make the availability of financial aid and loan repayment assistance options an important consideration in a student’s decision to pursue a postsecondary education.

(b) It is, therefore, the intent of the Legislature that the Assumption Program of Loans for Education be designed to provide veteran teachers and outstanding postsecondary students, particularly economically disadvantaged students, with the assurance of financial assistance to encourage them to complete postsecondary education programs leading to teaching credentials, and to seek employment as teachers in designated subject-matter shortage areas or in schools serving a large population of pupils from low-income families, schools with a high percentage of teachers holding emergency-type permits, or schools ranked in the lowest two deciles on the Academic Performance Index.

history: (History: Repealed and added by Stats. 2008, Ch. 516, Sec. 2. Effective January 1, 2009.)

title: 3. POSTSECONDARY EDUCATION

path: 3. POSTSECONDARY EDUCATION > 5. GENERAL PROVISIONS > 42. STUDENT FINANCIAL AID PROGRAM > 2. Student Financial Aid Programs > 5. Assumption Program of Loans for Education


text:
For purposes of this article, the following terms have the following definitions:

(a) “Eligible institution” means a postsecondary institution that is determined by the Student Aid Commission to meet both of the following requirements:

(1) The institution is eligible to participate in state and federal financial aid programs.

(2) The institution maintains a program of professional preparation that has been approved by the Commission on Teacher Credentialing.

(b) “Eligible school” means a school that meets any of the following criteria:

(1) It serves a large population of pupils from low-income families, as designated by the Superintendent of Public Instruction.

(2) The institution has 20 percent or more teachers holding emergency-type permits including, but not limited to, any of the following:

(A) Provisional internships.

(B) Short-term staff permits.

(C) Credential waivers.

(D) Substitute permits.

(3) It is a school that is ranked in the lowest two deciles on the Academic Performance Index.

(4) It is a school that serves a rural area.

history: (History: Added by Stats. 2008, Ch. 516, Sec. 3. Effective January 1, 2009.)

title: 3. POSTSECONDARY EDUCATION

article: 5. Assumption Program of Loans for Education


text:
(a) Program participants shall meet all of the following eligibility criteria prior to selection in the program and shall continue to meet these criteria, as appropriate, during the payment periods:

(1) The applicant has completed at least 60 semester units, or the equivalent, and is enrolled in an academic program leading to a baccalaureate degree at an eligible institution, has agreed to participate in a teacher internship program, or has been admitted to a program of professional preparation that has been approved by the Commission on Teacher Credentialing.

(2) The applicant is currently enrolled in, or has been admitted to, a program in which he or she will be enrolled on at least a half-time basis, as determined by the participating institution. The applicant shall agree to maintain satisfactory academic progress and a minimum of half-time enrollment, as defined by the participating eligible institution.

(A) Except as provided in subparagraphs (B) and (C), if a person participating in the program fails to maintain at least half-time enrollment, as required by this article, under the terms of the agreement pursuant to paragraph (2), the loan assumption agreement shall be invalidated and the participant shall retain full liability for all student loan obligations. This subparagraph shall not apply if the participant is in his or her final semester or quarter in school and has no additional coursework required to obtain his or her teaching credential.

(B) Notwithstanding subparagraph (A), if a program participant is unable to maintain at least half-time enrollment due to serious illness, pregnancy, or other natural causes, or is called to active military duty status, the participant is not required to retain full liability for the student loan obligation for a period not to exceed one calendar year, unless approved by the commission for a longer period.

(C) If a natural disaster prevents a program participant from maintaining at least half-time enrollment due to the interruption of instruction at the eligible institution, the term of the loan assumption agreement shall be extended for a period not to exceed one calendar year, unless approved by the commission for a longer period.

(3) The applicant has been judged by his or her postsecondary institution, school district, or county office of education to have outstanding ability on the basis of criteria that may include, but need not be limited to, any of the following:

(A) Grade point average.

(B) Test scores.

(C) Faculty evaluations.

(D) Interviews.

(E) Other recommendations.

(4) The applicant has received, or is approved to receive, a loan under one or more of the following designated loan programs:

(A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071 et seq.).

(B) Any educational loan program approved by the Student Aid Commission.

(5) The applicant has agreed to teach full time for at least four consecutive academic years, or on a part-time basis for the equivalent of four full-time academic years, after obtaining a teaching credential in a public elementary or secondary school in this state, in a subject area that is designated as a current or projected shortage area by the Superintendent of Public Instruction, or, on the date the teacher is hired, at an eligible school.

(b) An agreement shall remain valid even if the subject area under which an applicant becomes eligible to enter into an agreement ceases to be a designated shortage field by the time the applicant becomes a teacher.

(c) For the purposes of calculating eligible years of teaching for the redemption of an award, the inclusion by the Superintendent of Public Instruction of a school on a list prepared pursuant to Section 69613.1 shall apply retroactively from the date the school first opened.

(d) A person participating in the program pursuant to this section shall not enter into more than one agreement.

(e) A person participating in the program pursuant to this section shall not owe a refund on any state or federal educational grant or have defaulted on any student loan.

(f) Notwithstanding any other provision of this section, a credentialed teacher teaching in a public school ranked in the lowest two deciles on the Academic Performance Index pursuant to Section 52052, possesses a clear multiple subject or single subject teaching credential or level II education specialist credential and who has not otherwise participated in the program established by this article, is eligible to enter into an agreement for loan assumption pursuant to this article. The number of loan assumption agreements provided pursuant to this subdivision shall not exceed 400 per year. The commission shall develop and adopt regulations for the implementation of this subdivision by January 1, 2010.

history: (History: Amended by Stats. 2010, Ch. 328, Sec. 53. (SB 1330) Effective January 1, 2011.)

title: 3. POSTSECONDARY EDUCATION


text:
On or before January 1 of each year, the Superintendent of Public Instruction shall furnish the commission with all of the following:

(a) A list of teaching fields that have the most critical shortage of teachers. The Superintendent shall review this list annually and revise the list as he or she deems necessary. The list of shortage areas furnished pursuant to this subdivision shall include the state special schools as a category separate from special education.

(b) A list of schools that serve a large population of pupils from low-income families, as designated for purposes of the Perkins Loan Program, or according to standards the Superintendent deems appropriate.

(c) A list of schools with a high percentage of teachers holding emergency-type permits. The list shall be established according to criteria determined by the Superintendent.

(d) A list of schools serving rural areas. The list shall be established according to standards deemed appropriate by the Superintendent.

(e) A list of schools ranked in the lowest two deciles on the Academic Performance Index.

(f) A list of high priority schools.

history: (History: Amended by Stats. 2008, Ch. 516, Sec. 6. Effective January 1, 2009.)

title: 3. POSTSECONDARY EDUCATION


text:
The commission shall commence loan assumption payments, as specified in Section 69613.4, upon verification that the applicant has fulfilled all of the following:

(a) The applicant has received a California preliminary or professional clear credential, or an equivalent credential from another state, authorizing service for kindergarten or any of grades 1 to 12, inclusive.

(b) The applicant has provided full-time classroom instruction, or the equivalent on a part-time basis, in a public elementary or secondary school for the equivalent of one school year.

(c) The applicant has met the requirements of the agreement and all other pertinent conditions of this article.

history: (History: Amended by Stats. 2008, Ch. 516, Sec. 7. Effective January 1, 2009.)

title: 3. POSTSECONDARY EDUCATION


text:
(a) The terms of a loan assumption granted under this article shall be as follows, subject to the specific terms of each agreement:

(1) After a program participant has completed one school year of classroom instruction pursuant to Section 69613.2, the commission shall assume up to two thousand dollars ($2,000) of the participant’s outstanding liability under one or more of the designated educational loan programs.

(2) After a program participant has completed two consecutive school years of instruction, the commission shall assume up to an additional three thousand dollars ($3,000) of the participant’s outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to five thousand dollars ($5,000).

(3) After a program participant has completed three consecutive school years of teaching service, the commission shall assume up to a maximum of an additional three thousand dollars ($3,000) of the participant’s outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to eight thousand dollars ($8,000).

(4) After a program participant has completed four consecutive school years of teaching service, the commission shall assume up to a maximum of an additional three thousand dollars ($3,000) of the participant’s outstanding liability under one or more of the designated educational loan programs, for a total loan assumption of up to eleven thousand dollars ($11,000).

(b) For purposes of this section, “school year” means at least 175 school days or its equivalent.

(c) An applicant who teaches on less than a full-time basis may participate in the program, but shall not be eligible for loan repayment until that person teaches for the equivalent of a full-time academic year.

history: (History: Amended by Stats. 2008, Ch. 516, Sec. 8. Effective January 1, 2009.)

title: 3. POSTSECONDARY EDUCATION