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		<ns0:Id>20250AB__079198AMD</ns0:Id>
		<ns0:VersionNum>98</ns0:VersionNum>
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			<ns0:Action>
				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-18</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
				<ns0:ActionDate>2025-04-24</ns0:ActionDate>
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		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
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			<ns0:MeasureType>AB</ns0:MeasureType>
			<ns0:MeasureNum>791</ns0:MeasureNum>
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Berman</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Berman</ns0:Name>
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		</ns0:Authors>
		<ns0:Title> An act to amend Section 69432.7 of the Education Code, relating to student financial aid. </ns0:Title>
		<ns0:RelatingClause>student financial aid</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Student financial aid: Cal Grant Program: cost of attendance. </ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>Existing law, the Cal Grant Program, establishes the Cal Grant A Entitlement Awards, the Cal Grant B Entitlement Awards, the California Community College Expanded Entitlement Awards, the California Community College Transfer 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. Existing law establishes eligibility requirements for awards under the Cal Grant Program for participating students attending qualifying postsecondary educational institutions, and prescribes requirements that postsecondary educational institutions must comply with in order to be a qualifying postsecondary educational institution for purposes of the Cal Grant Program, including, among others, certain disclosure requirements.</html:p>
			<html:p>This bill would require, as part
			 of the criteria to be a qualifying institution under the Cal Grant Program, an institution to develop and implement a cost of attendance policy and adjustment process to estimate and adjust cost of attendance information in a manner that is consistent with federal standards, as specified.</html:p>
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	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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			<ns0:Num>SECTION 1.</ns0:Num>
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				<html:p>The Legislature finds and declares all of the following:</html:p>
				<html:p>
					(a)
					<html:span class="EnSpace"/>
					California has made meaningful gains to expand financial aid programs for low-income students, such as the Cal Grant, Student Success Completion Grant, and Middle Class Scholarship, to ensure that all Californians can earn a postsecondary credential without excessive work hours or debt.
				</html:p>
				<html:p>
					(b)
					<html:span class="EnSpace"/>
					Cost of Attendance (COA) is an institution of higher education’s determination of what a student has to pay to attend that college in a given year and includes both tuition and nontuition expenses like living costs, books and supplies,
				and transportation.
				</html:p>
				<html:p>
					(c)
					<html:span class="EnSpace"/>
					Section 472 of the federal Higher Education Act of 1965 (20 U.S.C. Sec. 1087ll) requires that postsecondary institutions include allowances for specified categories, including food and housing; transportation; dependent care; books, course materials, supplies, and equipment; and miscellaneous personal expenses in COA budgets and that these budgets, including all COA components, must be published on institutions’ websites.
				</html:p>
				<html:p>
					(d)
					<html:span class="EnSpace"/>
					The federal government has granted financial aid administrators the authority to make professional judgment determinations for COA adjustments on a case-by-case basis for individual students if their expenses exceed an institution’s COA budget.
				</html:p>
				<html:p>
					(e)
					<html:span class="EnSpace"/>
					COA budgets determine
				the amount of aid a student can receive, and if the COA does not accurately reflect a student’s expenses, the amount of aid they are eligible to receive will be less than their actual expenses, requiring the student to cover the difference through savings, support from family and friends, work, private borrowing, or reducing their enrollment in classes.
				</html:p>
				<html:p>
					(f)
					<html:span class="EnSpace"/>
					A report released in October 2024, titled “College Costs Uncovered: An Examination of the Accuracy of College Cost of Attendance Budgets and Implications for Student Success” (“College Costs Uncovered”), found that 53 percent of California public colleges and universities use COA budgets that are lower than estimated regional costs and that nearly one-third of institutions have COA budgets that have not kept pace with inflation.
				</html:p>
				<html:p>
					(g)
					<html:span class="EnSpace"/>
					“College Costs Uncovered” further revealed that nearly two-thirds of California public postsecondary institutions do not publish information about their COA adjustments policies on campus websites as required in Section 472 of the federal Higher Education Act of 1965 (20 U.S.C. Sec. 1087ll).
				</html:p>
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			<ns0:Num>SEC. 2.</ns0:Num>
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				Section 69432.7 of the 
				<ns0:DocName>Education Code</ns0:DocName>
				 is amended to read:
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				<ns0:LawSection id="id_A89C9768-9005-4B75-88F9-FA10F871620B">
					<ns0:Num>69432.7.</ns0:Num>
					<ns0:LawSectionVersion id="id_8A3D4F7C-7CA3-44AD-9ACC-FE6C1C91152B">
						<ns0:Content>
							<html:p>As used in this chapter, the following terms have the following meanings:</html:p>
							<html:p>
								(a)
								<html:span class="EnSpace"/>
								An “academic year” is July 1 to June 30, inclusive. The starting date of a session shall determine the academic year in which it is included.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								“Access costs” means living expenses and expenses for transportation, supplies, technology, and books.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								“Award year” means one academic year, or the equivalent, of attendance at a qualifying institution.
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								“College grade point average” and “community college grade point average” mean a grade
						point average calculated on the basis of all college work completed, except for nontransferable units and courses not counted in the computation for admission to a California public institution of higher education that grants a baccalaureate degree.
							</html:p>
							<html:p>
								(e)
								<html:span class="EnSpace"/>
								“Commission” means the Student Aid Commission.
							</html:p>
							<html:p>
								(f)
								<html:span class="EnSpace"/>
								“Enrollment status” means part- or full-time status.
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								“Part time,” for purposes of Cal Grant eligibility, means 6 to 11 semester units, inclusive, or the equivalent.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								“Full time,” for purposes of Cal Grant eligibility, means 12 or more semester units or the equivalent.
							</html:p>
							<html:p>
								(g)
								<html:span class="EnSpace"/>
								“Expected family
						contribution,” with respect to an applicant, shall be determined using the federal methodology pursuant to subdivision (a) of Section 69506 (as established by Title IV of the
						federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.)) and applicable rules and regulations adopted by the commission.
							</html:p>
							<html:p>
								(h)
								<html:span class="EnSpace"/>
								“High school grade point average” means a grade point average calculated on a 4.0 scale, using all academic coursework, for the sophomore year, the summer following the sophomore year, the junior year, and the summer following the junior year, excluding physical education, Reserve Officers’ Training Corps (ROTC), and remedial courses, and computed pursuant to regulations of the commission. However, for high school graduates who apply after their senior year, “high school grade point average” includes senior year coursework.
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								“Instructional program of not less than one academic year” means a program of study that
						results in the award of an associate or baccalaureate degree or certificate requiring at least 24 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.
							</html:p>
							<html:p>
								(j)
								<html:span class="EnSpace"/>
								“Instructional program of not less than two academic years” means a program of study that results in the award of an associate or baccalaureate degree requiring at least 48 semester units or the equivalent, or that results in eligibility for transfer from a community college to a baccalaureate degree program.
							</html:p>
							<html:p>
								(k)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								“Maximum household income and asset levels” means the applicable household income and household asset levels for participants, including new applicants and renewing recipients, in the Cal Grant Program, as defined and
						adopted in regulations by the commission for the 2001–02 academic year, which shall be set pursuant to the following income and asset ceiling amounts:
							</html:p>
							<html:br/>
							<html:table class="convertedTable" id="id_AF1E983B-B883-42B5-8FC2-0F156223AABB">
								<html:colgroup>
									<html:col width="239.0"/>
									<html:col width="175.0"/>
								</html:colgroup>
								<html:tbody>
									<html:tr>
										<html:td colspan="2" valign="bottom">
											<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">
												CAL GRANT PROGRAM INCOME CEILINGS
												<html:br/>
											</html:p>
										</html:td>
									</html:tr>
								</html:tbody>
							</html:table>
							<html:table class="convertedTable" frame="box" id="id_DEDB6414-3A6E-4916-978C-BC73690A5D82" rules="rows">
								<html:colgroup>
									<html:col width="202.0"/>
									<html:col width="106.0"/>
									<html:col width="106.0"/>
								</html:colgroup>
								<html:tbody>
									<html:tr>
										<html:td valign="bottom">
											<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
										<html:td valign="bottom">
											<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">
												Cal Grant A,
												<html:br/>
												 C, and T
											</html:p>
										</html:td>
										<html:td valign="bottom">
											<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">Cal Grant B</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td colspan="3">
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">Dependent and Independent students with dependents*</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">Family Size</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
												<html:span class="EmSpace"/>
												<html:span class="EmSpace"/>
												Six or more
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$74,100
												<html:span class="EmSpace"/>
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$40,700
												<html:span class="EmSpace"/>
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
												<html:span class="EmSpace"/>
												<html:span class="EmSpace"/>
												Five
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$68,700
												<html:span class="EmSpace"/>
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$37,700
												<html:span class="EmSpace"/>
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
												<html:span class="EmSpace"/>
												<html:span class="EmSpace"/>
												Four
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$64,100
												<html:span class="EnSpace"/>
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$33,700
												<html:span class="EmSpace"/>
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
												<html:span class="EmSpace"/>
												<html:span class="EmSpace"/>
												Three
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$59,000
												<html:span class="EmSpace"/>
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$30,300
												<html:span class="EnSpace"/>
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
												<html:span class="EmSpace"/>
												<html:span class="EmSpace"/>
												Two
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$57,600
												<html:span class="EnSpace"/>
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$26,900
												<html:span class="EmSpace"/>
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
												<html:br/>
												 Independent
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												<html:br/>
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
												<html:span class="EmSpace"/>
												<html:span class="EmSpace"/>
												Single, no dependents
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$23,500
												<html:span class="EnSpace"/>
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$23,500
												<html:span class="EnSpace"/>
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
												<html:span class="EmSpace"/>
												<html:span class="EmSpace"/>
												Married
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$26,900
												<html:span class="EnSpace"/>
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$26,900
												<html:span class="EnSpace"/>
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
									</html:tr>
								</html:tbody>
							</html:table>
							<html:p class="FlushLeftRight" style="font-size:10pt; margin-left:0pt; text-indent:0pt;">
								*Applies to independent students with dependents other than a 
								<html:br/>
								spouse.
							</html:p>
							<html:table class="convertedTable" id="id_87DBCAB0-0313-482B-B715-7195F64AFC44">
								<html:colgroup>
									<html:col width="239.0"/>
									<html:col width="175.0"/>
								</html:colgroup>
								<html:tbody>
									<html:tr>
										<html:td colspan="2" valign="bottom">
											<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">
												CAL GRANT PROGRAM ASSET CEILINGS
												<html:br/>
											</html:p>
										</html:td>
									</html:tr>
								</html:tbody>
							</html:table>
							<html:table class="convertedTable" frame="box" id="id_C5F56491-BA4D-417E-BA80-6DC5864892A8" rules="rows">
								<html:colgroup>
									<html:col width="202.0"/>
									<html:col width="106.0"/>
									<html:col width="106.0"/>
								</html:colgroup>
								<html:tbody>
									<html:tr>
										<html:td valign="bottom">
											<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
										<html:td valign="bottom">
											<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">
												Cal Grant A,
												<html:br/>
												 C, and T
											</html:p>
										</html:td>
										<html:td valign="bottom">
											<html:p class="HeaderCentered" style="font-size:9pt; text-align:center; text-indent:0pt;">Cal Grant B</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
												<html:br/>
												 Dependent**
												<html:span class="SpacedLeaders"/>
												<html:span class="SpacedLeaders"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												<html:br/>
												$49,600
												<html:span class="EmSpace"/>
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												<html:br/>
												$49,600
												<html:span class="EmSpace"/>
												<html:span class="EnSpace"/>
											</html:p>
										</html:td>
									</html:tr>
									<html:tr>
										<html:td>
											<html:p class="Left10Point" style="font-size:10pt; text-align:left; ; text-indent:0pt;">
												Independent
												<html:span class="SpacedLeaders"/>
												<html:span class="SpacedLeaders"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$23,600
												<html:span class="EnSpace"/>
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
										<html:td>
											<html:p class="Right10Point" style="font-size:10pt; text-align:right; text-indent:0pt;">
												$23,600
												<html:span class="EnSpace"/>
												<html:span class="EmSpace"/>
											</html:p>
										</html:td>
									</html:tr>
								</html:tbody>
							</html:table>
							<html:p class="FlushLeftRight" style="font-size:10pt; margin-left:0pt; text-indent:0pt;">**Applies to independent students with dependents other than a spouse.</html:p>
							<html:br/>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The commission shall annually adjust the maximum household income and asset levels based on the percentage change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII
								<html:span class="ThinSpace"/>
								B of the California Constitution. The maximum household income and asset levels applicable to a renewing recipient shall be the greater of the adjusted maximum household income and asset levels or the maximum household income and
						asset levels at the time of the renewing recipient’s initial Cal Grant award. For a recipient who was initially awarded a Cal Grant for an academic year before the 2011–12 academic year, the maximum household income and asset levels shall be the greater of the adjusted maximum household income and asset levels or the 2010–11 academic year maximum household income and asset levels. An applicant or renewal recipient who qualifies to be considered under the simplified needs test established by federal law for student assistance shall be presumed to meet the asset level test under this section. Before disbursing any Cal Grant funds, a qualifying institution shall be obligated, under the terms of its institutional participation agreement with the commission, to resolve any conflicts that may exist in the data the institution possesses relating to that individual.
							</html:p>
							<html:p>
								(
								<html:i>l</html:i>
								)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								“Qualifying institution” means an institution that complies with paragraphs (2) to (5), inclusive, and is any of the following:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								A California private or independent postsecondary educational institution that participates in the Pell Grant Program and in at least two of the following federal student aid programs:
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								Federal Work-Study Program.
							</html:p>
							<html:p>
								(ii)
								<html:span class="EnSpace"/>
								Federal Stafford Loan Program.
							</html:p>
							<html:p>
								(iii)
								<html:span class="EnSpace"/>
								Federal Supplemental Educational Opportunity Grant Program.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								A nonprofit institution headquartered and operating in California that certifies to the commission that 10 percent
						of the institution’s operating budget, as demonstrated in an audited financial statement, is expended for purposes of institutionally funded student financial aid in the form of grants, that demonstrates to the commission that it has the administrative capacity to administer the funds, that is accredited by the Western Association of Schools and Colleges, and that meets any other state-required criteria adopted by regulation by the commission in consultation with the Department of Finance. A regionally accredited institution that was deemed qualified by the commission to participate in the Cal Grant Program for the 2000–01 academic year shall retain its eligibility as long as it maintains its existing accreditation status.
							</html:p>
							<html:p>
								(C)
								<html:span class="EnSpace"/>
								A California public postsecondary educational institution.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								The institution shall provide information on where to access California license examination passage rates for the most recent available year from graduates of its undergraduate programs leading to employment for which passage of a California licensing
						examination is required, if that data is electronically available through the internet website of a California licensing or regulatory agency. For purposes of this paragraph, “provide” may exclusively include placement of an internet website address labeled as an access point for the data on the passage rates of recent program graduates on the internet website where enrollment information is also located, on an internet website that provides centralized admissions information for postsecondary educational systems with multiple campuses, or on applications for enrollment or other program information distributed to prospective students.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								The institution shall be responsible for certifying to the commission compliance with the requirements of subparagraph (A).
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								The commission shall certify by November 1 of each year the institution’s latest official three-year cohort default rate and graduation rate as most recently reported by the United States Department of Education. For purposes of this section, the graduation rate is the percentage of full-time, first-time degree or certificate-seeking undergraduate students who graduate in 150 percent or less of the expected time to complete degree requirements as most recently reported publicly in any format, including preliminary data records, by the United States Department of Education.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								For purposes of the 2011–12 academic year, an otherwise qualifying institution with a three-year cohort default rate reported by the United States Department of Education that is equal to or greater than 24.6 percent shall be
						ineligible for initial and renewal Cal Grant awards at the institution.
							</html:p>
							<html:p>
								(C)
								<html:span class="EnSpace"/>
								For purposes of the 2012–13 academic year, and every academic year thereafter, an otherwise qualifying institution with a three-year cohort default rate that is equal to or greater than 15.5 percent, as certified by the commission on October 1, 2011, and every year thereafter, shall be ineligible for initial and renewal Cal Grant awards at the institution.
							</html:p>
							<html:p>
								(D)
								<html:span class="EnSpace"/>
								(i)
								<html:span class="EnSpace"/>
								An otherwise qualifying institution that becomes ineligible under this paragraph for initial and renewal Cal Grant awards shall regain its eligibility for the academic year for which it satisfies the requirements established in subparagraph (B), (C), or (F), as applicable.
							</html:p>
							<html:p>
								(ii)
								<html:span class="EnSpace"/>
								If the United States Department of Education corrects or revises an institution’s three-year cohort default rate or graduation rate that originally failed to satisfy the requirements established in subparagraph (B), (C), or (F), as applicable, and the correction or revision results in the institution’s three-year cohort default rate or graduation rate satisfying those requirements, that institution shall immediately regain its eligibility for the academic year to which the corrected or revised three-year cohort default rate or graduation rate would have been applied.
							</html:p>
							<html:p>
								(E)
								<html:span class="EnSpace"/>
								An otherwise qualifying institution for which no three-year cohort default rate or graduation rate has been reported by the United States Department of Education shall be provisionally eligible to participate in the Cal Grant Program until a three-year cohort
						default rate or graduation rate has been reported for the institution by the United States Department of Education.
							</html:p>
							<html:p>
								(F)
								<html:span class="EnSpace"/>
								For purposes of the 2012–13 academic year, and every academic year thereafter, an otherwise qualifying institution with a graduation rate of 30 percent or less, as certified by the commission pursuant to subparagraph (A), shall be ineligible for
						initial and renewal Cal Grant awards at the institution, except as provided for in subparagraph (H).
							</html:p>
							<html:p>
								(G)
								<html:span class="EnSpace"/>
								Notwithstanding any other law, the requirements of this paragraph shall not apply to institutions with 40 percent or less of undergraduate students borrowing federal student loans, using information reported to the United States Department of Education for the academic year two years before the academic year in which the commission is certifying the three-year cohort default rate or graduation rate pursuant to subparagraph (A).
							</html:p>
							<html:p>
								(H)
								<html:span class="EnSpace"/>
								Notwithstanding subparagraph (F), an otherwise qualifying institution that maintains a three-year cohort default rate that is less than 15.5 percent and a graduation rate above 20 percent for students taking 150 percent or less of the
						expected time to complete degree requirements, as certified by the commission pursuant to subparagraph (A), shall be eligible for initial and renewal Cal Grant awards at the institution through the 2016–17 academic year.
							</html:p>
							<html:p>
								(I)
								<html:span class="EnSpace"/>
								Notwithstanding subparagraph (D), for the 2024–25 academic year, the commission shall use the three-year cohort default rate certified in 2020 to certify an otherwise qualifying institution pursuant to this paragraph.
							</html:p>
							<html:p>
								(J)
								<html:span class="EnSpace"/>
								The commission shall do all of the following:
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								Notify initial Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards under subparagraph (C) or (F) that the institution is ineligible for initial Cal Grant
						awards for the academic year for which the student received an initial Cal Grant award.
							</html:p>
							<html:p>
								(ii)
								<html:span class="EnSpace"/>
								Notify renewal Cal Grant recipients attending an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) that the student’s Cal Grant award will be reduced by 20 percent, or eliminated, as appropriate, if the student attends the ineligible institution in an academic year in which the institution is ineligible.
							</html:p>
							<html:p>
								(iii)
								<html:span class="EnSpace"/>
								Provide initial and renewal Cal Grant recipients seeking to attend, or attending, an institution that is ineligible for initial and renewal Cal Grant awards at the institution under subparagraph (C) or (F) with a complete list of all California postsecondary educational institutions at which the student would be
						eligible to receive an unreduced Cal Grant award.
							</html:p>
							<html:p>
								(iv)
								<html:span class="EnSpace"/>
								(I)
								<html:span class="EnSpace"/>
								Establish an appeal process for an otherwise qualifying institution that fails to satisfy the three-year cohort default rate and graduation rate requirements in subparagraphs (C) and (F), respectively.
							</html:p>
							<html:p>
								(II)
								<html:span class="EnSpace"/>
								The commission may grant an appeal for an academic year only if the commission has determined the institution has a cohort size of 20 individuals or less and the cohort is not representative of the overall institutional performance.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								By the start of the 2024–25 academic year, the institution shall develop and implement policies defining “satisfactory academic progress” in a manner that is consistent with the federal standards published
						in Title 34 of the Code of Federal Regulations. The institution shall also comply with all of the following requirements:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								Set the standards for grade point average and pace of completion at the minimum federal standards as determined by Section 668.34(a) of Title 34 of the Code of Federal Regulations.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								Provide information to students about the institution’s “satisfactory academic progress” standards and financial aid appeals process during new student orientation and include student-friendly language on the institution’s internet website and financial aid award letters regarding the standards and appeals process. The institution shall request its faculty to include student-friendly language on course syllabi regarding the standards and appeals process.
							</html:p>
							<html:p>
								(C)
								<html:span class="EnSpace"/>
								Notify a student when the student has not achieved the “satisfactory academic progress” standards following every term of enrollment, regardless of the frequency at which “satisfactory academic progress” is formally evaluated. This subparagraph does not preclude an institution from conducting the formal evaluation annually.
							</html:p>
							<html:p>
								(D)
								<html:span class="EnSpace"/>
								Evaluate whether a student satisfies the grade point average and pace of completion standards set forth in subparagraph (A) based on cumulative measures. An institution shall not require a student to satisfy the minimum grade point average and pace of completion standards for each individual term. This paragraph does not preclude an institution from requiring a student on “financial aid probation” as defined by Section 668.34(b) of Title 34
						of the Code of Federal Regulations to comply with the terms of the student’s academic plan in order to maintain financial aid eligibility.
							</html:p>
							<html:p>
								(E)
								<html:span class="EnSpace"/>
								Exclude remedial coursework from maximum timeframe calculations if the institution offers remedial coursework.
							</html:p>
							<html:p>
								(F)
								<html:span class="EnSpace"/>
								Allow a student who fulfills the terms and conditions of the student’s academic plan to remain on “financial aid probation” as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, including continuing to receive financial aid for any term for which the student fulfills the terms and conditions of the student’s academic plan.
							</html:p>
							<html:p>
								(G)
								<html:span class="EnSpace"/>
								In the case of a “satisfactory academic progress” determination for a transfer student, when calculating maximum timeframe
						as defined by Section 668.34(b) of Title 34 of the Code of Federal Regulations, only include those credits from other institutions that count towards the student’s current program of study.
							</html:p>
							<html:p>
								(H)
								<html:span class="EnSpace"/>
								Accept both electronic and hard copy financial aid appeals for any student who is ineligible to receive financial aid due to the determination that the student did not meet “satisfactory academic progress,” as defined by the institution where the student is enrolled, subject to all of the following:
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								A student who loses financial aid eligibility may appeal the
						determination during any subsequent term following loss of financial aid eligibility. The institution shall not limit the total number of appeals that may be submitted by a student throughout the duration of the student’s enrollment. The institution may limit the number of appeals per term, but each appeal that is denied shall be subject to the second review process pursuant to clause (vi). The institution shall not impose deadlines for submitting an appeal that are earlier than three weeks before the end of each term.
							</html:p>
							<html:p>
								(ii)
								<html:span class="EnSpace"/>
								A student who previously disenrolled while being ineligible to receive financial aid may appeal the loss of financial aid upon reenrollment, and the timing for consideration of the appeal shall allow the student, if the student meets the criteria for financial aid reinstatement, to qualify for reinstatement upon
						the first term of reenrollment.
							</html:p>
							<html:p>
								(iii)
								<html:span class="EnSpace"/>
								The institution shall provide a student who is ineligible to receive financial aid with written notice of the financial aid appeals process, including the process for a student to file an appeal, information about the second review process for an appeal that is denied as described in clause (vi), and how a student may request a second review.
							</html:p>
							<html:p>
								(iv)
								<html:span class="EnSpace"/>
								In reviewing a student’s appeal, the institution may consider any additional special circumstances that the institution deems appropriate, and shall consider a broad range of special circumstances, including, but not limited to, any of the following:
							</html:p>
							<html:p>
								(I)
								<html:span class="EnSpace"/>
								Death of a relative or other significant person.
							</html:p>
							<html:p>
								(II)
								<html:span class="EnSpace"/>
								Injury or illness, including, but not limited to, behavioral health conditions, of the student or a relative or other significant person.
							</html:p>
							<html:p>
								(III)
								<html:span class="EnSpace"/>
								Pregnancy or birth of a child.
							</html:p>
							<html:p>
								(IV)
								<html:span class="EnSpace"/>
								Homelessness.
							</html:p>
							<html:p>
								(V)
								<html:span class="EnSpace"/>
								Loss of childcare.
							</html:p>
							<html:p>
								(VI)
								<html:span class="EnSpace"/>
								Loss or change in employment.
							</html:p>
							<html:p>
								(VII)
								<html:span class="EnSpace"/>
								Loss of access to personal or public transportation.
							</html:p>
							<html:p>
								(VIII)
								<html:span class="EnSpace"/>
								Being a victim of a serious crime, including, but not limited to, domestic abuse, even if the crime was not reported or did not result in criminal prosecution or
						civil liability.
							</html:p>
							<html:p>
								(IX)
								<html:span class="EnSpace"/>
								Natural disaster.
							</html:p>
							<html:p>
								(X)
								<html:span class="EnSpace"/>
								Change of major.
							</html:p>
							<html:p>
								(v)
								<html:span class="EnSpace"/>
								The institution shall review a student’s appeal and notify the student of the appeal decision within 45 days of submission of a complete appeal. The institution shall not disenroll a student for nonpayment of tuition and fees while the student’s appeal is pending.
							</html:p>
							<html:p>
								(vi)
								<html:span class="EnSpace"/>
								The institution shall provide a second review process for an appeal that is denied if requested by the student. The second review shall be conducted by a reviewer who did not participate in the first review.
							</html:p>
							<html:p>
								(vii)
								<html:span class="EnSpace"/>
								The institution shall waive any requirement for
						third-party written documentation of the special circumstances forming the basis of an appeal if that documentation cannot be reasonably obtained by the student and the student signs a statement attesting to the veracity of the special circumstances presented as the grounds for appeal.
							</html:p>
							<html:p>
								(viii)
								<html:span class="EnSpace"/>
								This subparagraph shall not be interpreted to require institutions to provide retroactive financial aid for a term preceding the term in which a student reenrolls.
							</html:p>
							<html:p>
								(5)
								<html:span class="EnSpace"/>
								Notwithstanding Section 66014.2, no later than the start of the 2026–27 academic year, the institution shall develop and implement a cost of attendance policy and adjustment process to estimate and adjust cost of attendance information in a manner that is consistent with Section 472 of the federal Higher Education Act
						of 1965 (20 U.S.C. Sec. 1087ll). The institution shall comply with all of the following requirements:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								Implement a cost of attendance methodology that sets the off-campus student housing budget at no less than one-half of the median rent for a two-bedroom apartment in the California metropolitan area where the institution is located, as described
						in Section 888.113 of Title 24 of the Code of Federal Regulations, notwithstanding subparagraph (C) of paragraph (1) of subdivision (b) of Section 66027.82.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								Prominently display, by means that may include a link to a separate internet website, the data sources and assumptions used to calculate each component of the institution’s cost of attendance budget on the institution’s internet website page that contains information about their cost of attendance budget.
							</html:p>
							<html:p>
								(C)
								<html:span class="EnSpace"/>
								Implement a cost of attendance adjustment process that allows for adjustments to any student expense category included in the institution’s cost of attendance budget, including, but not limited to, housing, food, transportation, books and supplies, miscellaneous personal
						expenses, and dependent care.
							</html:p>
							<html:p>
								(D)
								<html:span class="EnSpace"/>
								Consider cost of attendance adjustments, including, but not limited to, for all of the following circumstances:
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								Housing and utility costs for reasonable living accommodations that exceed the allowance provided for in the cost of attendance budget.
							</html:p>
							<html:p>
								(ii)
								<html:span class="EnSpace"/>
								The cost of purchasing a computer.
							</html:p>
							<html:p>
								(iii)
								<html:span class="EnSpace"/>
								The cost of uninsured medical, dental, or optical expenses.
							</html:p>
							<html:p>
								(iv)
								<html:span class="EnSpace"/>
								The cost of transportation exceeding the allowance provided for in the cost of attendance budget, including automobile expenses such as gas, repairs, and insurance.
							</html:p>
							<html:p>
								(v)
								<html:span class="EnSpace"/>
								The cost of dependent care expenses for students with dependent children.
							</html:p>
							<html:p>
								(vi)
								<html:span class="EnSpace"/>
								An allowance for expenses associated with a student’s disability, including special services, personal assistance, transportation, equipment, and supplies that are reasonably incurred and not provided for by other agencies.
							</html:p>
							<html:p>
								(E)
								<html:span class="EnSpace"/>
								Accept both electronic and hard copy cost of attendance adjustment requests.
							</html:p>
							<html:p>
								(F)
								<html:span class="EnSpace"/>
								Complete the review of a student’s cost of attendance adjustment request and notify the student of the decision within 14 calendar days of submission of a complete request. Rejected requests shall include a description of the reason for the denial and information
						regarding how the student can request a second review.
							</html:p>
							<html:p>
								(G)
								<html:span class="EnSpace"/>
								Waive any requirement for third-party documentation of a student’s expenses if the documentation cannot be reasonably obtained by the student and the student provides a written statement or completes a documented interview with a financial aid advisor attesting to the veracity of the expenses. Institutions shall further accept a written statement from any on-campus support program that has knowledge of the student’s expenses as adequate verification.
							</html:p>
							<html:p>
								(H)
								<html:span class="EnSpace"/>
								Allow a student to submit a cost of attendance adjustment request at any time during enrollment. The institution shall not limit the
						total number of requests that may be submitted by a student throughout the duration of the student’s enrollment. The institution shall not impose cost-of-attendance adjustment request deadlines that are earlier than three weeks before the end of each term.
							</html:p>
							<html:p>
								(I)
								<html:span class="EnSpace"/>
								If requested by the student, provide a second review process for an adjustment request that is denied. The second review shall be conducted by a reviewer who did not participate in the first review.
							</html:p>
							<html:p>
								(J)
								<html:span class="EnSpace"/>
								Prominently display, using student-friendly language, information about the institution’s cost of attendance adjustment process, including how to submit a request, the timeline for review and notification of the decision, and contact information for
						staff who can help the student complete an adjustment request on the institution’s internet website page that contains information about their cost of attendance budget, by means that may include a link to a separate internet website. This information shall also be included in financial aid award letters.
							</html:p>
							<html:p>
								(m)
								<html:span class="EnSpace"/>
								“Satisfactory academic progress” means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations.
							</html:p>
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