Cal Grant SB 70
On March 24, 2011, Senate Bill (SB) 70 was chaptered into California law, which affects Cal Grant students and institutions beginning with the 2011-2012 academic year. Students attending a for-profit institution with high student loan default rates will no longer be eligible to receive a Cal Grant. It is estimated that nearly 4,900 students became ineligible or were offered a partial grant if they were already enrolled once SB 70 began in the 2011-2012 school year.
Currently, any California post-secondary institution where 40% or more of their undergraduate students are receiving federal student loans cannot have a Three-Year Cohert Default Rate (CDR) of 24.6 percent or higher. The Cohert Default Rate represents the school’s student loan default rate, which must not be greater than 24.6 percent.
Students already enrolled in a non-qualifying institution before SB70 took effect may receive a partial Cal Grant, but not the full amount. Starting in July 2012, the cutoff default rate is supposed to rise from 24.6 percent to 30 percent. If the institution makes the necessary changes to become eligible again then students will receive any unpaid Cal Grant payments.
Students that transfer from a non-qualifying school to a qualifying school will become eligible to receive a Cal Grant. It’s important to log into your, “Web Grants for Students,” account and click the link that says, “Submit School Change.” to update the school that you are planning to attend. Select an eligible Cal Grant school from the drop down list under the, “School Change To” section. Students should then click on the “submit change” box to process the school change.