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Dear Senator Boxer
May 27, 2009
Dear Assemblywoman Evans and Senator Ducheny,
As President of the California Association of Student
Financial Aid Administrators (CASFAA), representing approximately 1500
financial aid administrators from over 600 higher education institutions
in California, I am writing to express our grave concern over proposals
to cut California student assistance programs by eliminating the Cal
Grant program. We respect the urgency and difficulty in correcting the
state's budget crisis but solving that problem by denying hundreds of
thousands of California citizens access to higher education is a
destructive remedy. Has there ever been a time in our state's history
when an educated citizenry and productive workforce have been more needed?
Impact of Eliminating the Cal Grant Program
Since its creation in 1955, the Cal Grant Program has made it possible for
a countless number of Californians to attend college. According to the
California Student Aid Commission, approximately 280,000 students were
able to attend college this year through funds provided by this program.
If the phase-out of new awards is enacted, 118,000 students will find
their Cal Grant funds cancelled and their college plans altered or
eliminated. It is probable that fees at UC, CSU and the community
colleges will increase at the same time that state financial aid is
eliminated, making college an impossibility for many students.
Students attending private colleges will be
particularly impacted, since these institutions have indicated that they
do not have the resources to replace all of the Cal Grant funds their
students receive. There may be an expectation that many students will
"tier down" to a more affordable segment of higher education
and that students planning on going to a high cost private college will
attend the University of California (UC) or a California State College
(CSU) campus and those students now unable to afford to go to UC or CSU
will enroll in a community college. This is what usually occurs when
college funding is tight. However, the projected state budget included
large cuts to all public higher education segments which will result in
cutting classes and enrollment levels. Students attempting to change the
college they will be attending this late in the year are unlikely to be
able to be admitted at another college. This will even be true at
California Community Colleges which will be forced to turn away as many
as 250,000 students.
It is also unlikely that federal student aid programs
will be sufficient to replace a student's Cal Grant. Although the federal
Pell Grant program has recently been increased, the maximum award for
next year will increase by only $619. This is a small amount compared to
the UC and CSU fees and private school tuition currently covered by a
Cal Grant. We share the concern of our colleagues throughout the country
about the rising levels of student indebtedness and its long-term
affects and fear that thousands of students will turn to increased
borrowing of student loans as their only recourse.
Continue the Competitive Cal Grant Program
In the event that the proposal to eliminate all Cal Grants is not approved,
we also urge that the Competitive Cal Grant program be continued. Because
the Entitlement Cal Grant program is restricted to recent high school
graduates, the Competitive program is the only state-wide assistance
available for older, returning students. Each year, the Competitive Cal
Grant program provides access to higher education for over 25,000
Californian students. This Fall, Competitive Cal Grants were awarded
to 17,906 community college students, 892 University of California
students, 2,274 students attending CSU campuses, 3,364 students
attending vocational post-secondary institutions and 767 students in
independent colleges. These students are not eligible for the Entitlement
Cal Grant and rely heavily on the already limited Competitive Cal Grant
program to help cover tuition and other costs. Many of these students
would not have been able to attend the college of their choice, or, in
some cases, any college without Cal Grant funds. Although the majority of
these students attend a community college, Competitive Cal Grant awards
are, in many cases, the major financial resource enabling and motivating
them to complete their transfer program and continue on to a university.
Preserving the Future
The picture is bleak. California will see much of its best and brightest
going to other states or not attending college at all. Potential students
who should be part of the workforce rebuilding the state’s economy will,
instead, join the unemployed or underemployed or move to other states. It
will take generations for California to recover. Ability to pay will
become more important than the ability to learn and a college education in
California will only be available to those who can afford it. As previously
stated, we understand the painful decisions that must be made and that
solve the budget crisis is a burden that must be shared by everyone.
Rather than eventual elimination of the entire Cal Grant
program, we urge you to consider re-evaluating the student eligibility
criteria. Students must meet a number of standards and conditions to
receive a Cal Grant: minimum GPA, income ceilings, asset ceilings and
financial need. The current proposal to phase out Cal Grants will take
several years, at which time the program will cease to exist. Although by
this time, hopefully, the budget crisis will be behind us and the state's
economy will have recovered, it is uncertain that future legislatures will
be able to reinstate a program that equals the current Cal Grant program.
We believe that adjusting some of the eligibility criteria will allow the
state to preserve Cal Grants for its neediest, most deserving students
and future generations while reducing program costs.
As stated in our letter addressing the previous proposal
to cut Cal Grants, we strongly support the following statement issued by
The Institute for College Access & Success in their March 2008 report
on the impact of the proposed Cal Grant cuts:
"The proposed cut to the Cal Grant programs...
targets the students with the lowest incomes and highest grades. These
aspiring students stand to lose the most – and pose the greatest loss to
our workforce and economy – if they cannot afford the education and
training that colleges provide."
Higher education is essential to rebuilding financial
strength in our state. We understand the immense constraints and
difficulties inherent in resolving the state budget crisis, but believe
that expanding, rather than restricting, access to higher education is
an important solution to these problems. From that perspective, we urge
you not to enact these budget cuts.
We appreciate this opportunity to speak on behalf of
our students. Please contact me if we can be of any assistance
throughout this process.
Sincerely,
Barbara Bickett
CASFAA President
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