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| California Grants May Have A Shaky Future | |||||||
| With California still feeling the tightening grip of the budget crisis, certain programs, many of which involve higher education, are still on the brink. �One such program that helps underprivileged students pay for college had an especially shaky future but has now seemed to have gotten a new lease on life. | |||||||
| California Grants is a program in which money is awarded to students who meet financial requirements and maintain a certain grade point average. �This program is not a loan - it is, essentially, free money, which does not have to be repaid, and can be used at any institution of higher learning, as well as some trade schools in the state of California.� The money for Cal grants comes from the state itself, which is then doled out to students by the California Student Aid Commission (CSAC). | |||||||
| Governor Arnold Schwarzenegger, in his proposed January Budget, outlined several possible changes the Cal Grants program would face: UC-students would receive no more than $4,984-a-year for college and CSU-students would receive no more than $2,046-a-year, the 2003-04 levels; 4,450 eligible students would not receive grants, due to reduced household income ceilings; and the maximum award of $9,708-a-year for college would be reduced by 44 percent to $5,482-a-year for college. �The governor revised this budget in May, where he proposed reducing the number of awards CSAC can issue by over 5,500, which is approximately $5.4 million in losses. | |||||||
| On May 27 the Senate and Assembly Budget Subcommittees rejected several of the proposals the governor introduced, including the change in income ceilings, the reduction in the size of the maximum award, and the reduction of the number of awards CSAC could issue. �It also increased the program by $34.2 million to allow for the growth in new beneficiaries of the award. | |||||||
| A recent study performed by CSAC and EDFUND (a leading financial aid provider) confirms "that Cal Grant recipients were much more likely to re-enroll in college for second and subsequent years than those who didn't receive a Cal Grant." | |||||||
| According to Diana Fuentes-Michel, CSAC's executive director, "This report and its supporting research confirm what financial aid advocates in California have been saying for years: Cal Grants work. �Student financial aid in general - and the Cal Grant program in particular - literally change lives." | |||||||
| The study goes on to say that "96.5 percent of Cal Grant A recipients re-enrolled for a second year [but] perhaps even more remarkable, 93 percent of Cal Grant B recipients - students from very disadvantaged backgrounds - re-enrolled for a second year." | |||||||
| "The study provides evidence that the state's investment in Cal Grants is paying off," Fuentes-Michel said. �"Students are realizing their college aspirations and persisting to the completion of their education. �Cal Grant's help today's students become tomorrow's productive participants in the state and national economies." | |||||||
| Becky Stilling, president of EDFUND, in response to the study, said that re-enrollment among financial aid recipients was "more than anyone originally thought," and that "students enrolling in college today are sticking with their studies and pursuing their goals with real determination." | |||||||
| More information about Cal Grants can be found at http://www.calgrants.org. | |||||||
| Copyright Gerry Wachovsky, 2004, and Yahoo! Inc. All rights reserved. | |||||||
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