Student financial aid: Cal Grant Program.

Existing law, the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Cal Grant Program) , establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Cal Grant Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements and maximum levels for awards under these programs for participating students attending qualifying institutions, as defined. Under the Cal Grant Program, the maximum Cal Grant B award for a student attending the University of California or the California State University equals the mandatory systemwide fees in the segment attended by the student, plus the award for access costs, and the maximum Cal Grant B award for a student attending a nonpublic institution equals the amount of the tuition award, as prescribed, plus the award for access costs, except that in the first year of enrollment in a qualifying institution, the maximum award is only for the amount of the access award. With respect to Cal Grant B Entitlement awards, existing law requires that the award be used only for tuition, student fees, and access costs, as defined, in a for-credit instructional program that is not less than one academic year in length. Existing law requires that no more than 2% of new Cal Grant B recipients enrolling for the first time in an institution of postsecondary education are eligible for payments for tuition or fees, or both, in their first academic year of attendance. This bill would delete the 2% limit for receipt of payments for tuition or fees, or both, for new Cal Grant B Entitlement award recipients in their first academic year of attendance at an institution of postsecondary education, and instead provide that, for the 2015–16, 2016–17, and 2017–18 academic years, respectively, 25%, 50%, and 75% of the Cal Grant B Entitlement award recipients would be eligible for payments for tuition or fees, or both, in their first academic year of attendance at an institution of postsecondary education. The bill would further provide that, commencing with the 2018–19 academic year, and each academic year thereafter, all new Cal Grant B recipients enrolling for the first time in an institution of postsecondary education would be eligible for payments for tuition or fees, or both, in their first academic year of attendance. The bill also would provide that a student who receives a Cal Grant B that includes tuition costs in the first year shall have an amount of institutional aid the student receives that is equal to that award used to offset the highest interest rate loans extended to the student as part of his or her financial aid award, and that if no such student loans are part of the award, the bill would require the institution to use these institutional need-based funds to offset the highest interest rate loan awards for other Cal Grant recipient students. The bill would become operative on July 1, 2015.