Student financial aid: Competitive Cal Grant A and B awards.
The changes proposed in AB 370 intend to enhance flexibility in the distribution of Cal Grant awards. By requiring the commission to estimate a 'take rate'—the proportion of awards accepted versus offered—this bill seeks to better align the number of awards with actual student needs. This could potentially lead to increased support for students, as gaps in funding would be addressed based on empirical acceptance data rather than fixed limits. Immediate implications include a greater chance that eligible students will receive the awards necessary for their educational pursuits, particularly in the wake of rising costs of higher education in California.
Assembly Bill No. 370, introduced by Assembly Member Rodriguez, aims to amend Section 69437 of the California Education Code concerning student financial aid, specifically the Competitive Cal Grant A and B awards. The bill seeks to adjust the structure of these awards based on recent historical data regarding acceptance rates. Effective from the 2018-19 award year, the bill mandates the California Student Aid Commission to calculate a target number for awards to be disbursed in any given academic year and allows for exceeding the current cap of 25,750 awards if the number of acceptances surpasses that threshold.
AB 370 may face scrutiny from various stakeholders. Supporters argue that adjusting the limit based on real acceptance rates is a prudent response to evolving educational demand and will help students secure funding more efficiently. Conversely, critics may contend that the bill puts additional strain on state resources, especially if the number of awards consistently exceeds the established limits. Additionally, there could be concerns about the fairness and equity of the distribution process among differing student demographics, particularly those attending community colleges versus four-year institutions.