In an effort to stop Governor Schwarzenegger's proposal to eliminate California's system of financial aid for low-income students, the California Student Aid Commission (CSAC) asked the legislature to consider alternatives to save the Cal Grant program.
Commission Chair Barry Keene stated: "Eliminating one of the most successful programs in the history of California would require the future design and consideration of a new program. We should not lose the half-century of experience with Cal Grants. A generation of young people of working age without adequate knowledge and skills would be intolerable."
Commission Executive Director Diana Fuentes-Michel told the Budget Conference Committee, "We believe it is possible to keep our promise to California's students even during such a catastrophic budget crisis by considering alternative approaches that might include reconsideration of eligibility requirements, if absolutely necessary, and tapping revenue from the Student Loan Operating Fund to pay for the Cal Grant program."
The proposed elimination of Cal Grants would have an immediate and devastating impact on more than 200,000 of California's low income students. During its 55-year history of delivering financial aid to California's students, research has proven that Cal Grant recipients succeed in higher education and life. As an example, Cal Grant A recipients re-enroll in a second year of college at a rate of 96.5 percent, while Cal Grant B students, from the poorest families with the most limited resources, re-enroll at a rate of 93 percent.
"We should not need to re-educate policymakers about the need for, and economic and social value of, college access for the academically eligible but economically disadvantaged student," said Keene in a letter to the California Joint Legislative Budget Conference Committee.
The governor has also proposed completely eliminating CSAC itself.
"Under the guise of decentralization, the Administration is proposing to eliminate the Commission, the last bulwark against total elimination of Cal Grants. Because it is independent, the Commission can advocate for students in the budget process and can consider students' needs when developing policies for administering the Cal Grant Program. Decisions by a state department within the line of authority of an Administration will be directed by that Administration's budget needs, rather than the needs of students. The proposal to eliminate the Cal Grant Program is a salient example of this Administration's approach to solving its budget needs at the expense of student needs. The contrast between the Administration's approach and the Commission's approach of exploring options to achieve similar Cal Grant savings while maintaining much of the long-term benefits for the state's economic future, could not be more starkly illustrated," said Keene.
CSAC Press Release
Posted 06/04/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.
