Governor Proposes Eliminating Cal Grants for More Than 200,000 Students this Fall

In direct contrast to federal efforts to increase college access during the current recession, Governor Schwarzenegger proposed eliminating all new Cal Grants, along with deep cuts to public university systems and other essential state programs and services. The Cal Grant program has been an integral part of California’s commitment to college access and affordability for more than 50 years. Since 2001, all qualified graduating high school students have been guaranteed a Cal Grant.

“The Governor’s alarming threat to eliminate Cal Grants sends a discouraging signal about college affordability to all Californians,” said Lauren Asher, acting president of the Institute for College Access & Success. “Students and families are counting on Cal Grants in these tough times, and the proposed cuts will wreak havoc with college plans for this fall.”

The Governor seeks to cut approximately $250 million from the state budget. The Institute estimates that more than 200,000 students statewide – over two-thirds of all current students offered Cal Grants – would lose all or part of the Cal Grant they were counting on to help pay for college this fall. These students will see their financial aid packages reduced by between $576 and $9,708. Based on the Institute’s analysis, here is a snapshot of these high-achieving, financially needy students and what is at stake for them.

At least 118,300 students would lose their entire grant, worth up to $9,708, this fall: Eliminating all new Cal Grants would deny approximately 118,300 students access to aid dollars they needed and expected for the 2009-10 academic year. These students have very low to moderate incomes, and vary greatly in age and type of college, although nearly half would have attended community colleges.

At least 90,000 returning students would lose part of their Cal Grant this fall: An estimated additional 90,000 UC and CSU students would see their promised renewal grants reduced by up to $600 for 2009-10, a result of the Governor’s proposal to eliminate support for fee increases.

“The loss of Cal Grants will push lower income students off the college track, delay their progress, or leave them even deeper in debt as they struggle to make ends meet. Making it harder for Californians to get the training and education they need puts our state’s troubled economy at even greater risk, now and in the future,” said Asher. The Public Policy Institute of California recently found that California needs more than a million new college-educated workers by 2025 to protect the state economy from decline.

From Institute for College Access & Success

The Institute’s analysis is based on the distribution of 2007-08 Cal Grant offers (the best and most recent available data), as well as the Schwarzenegger administration’s projections for 2009-10, including: “2007-08 Cal Grant Program Recipients, Legislative Report Requirement”, California Student Aid Commission (CSAC), undated, and projections provided to the Institute by CSAC on May 22, 2009. The federal poverty level for a family of four is $22,050.