1. California Student Aid Commission
Presenter In Chat Room In Chat Room
Justin Watkins
Cal Grant Operations
Mgmt. Services Tech
Bryan Dickason
Program Administration
Manager
Tae Kang
Cal Grant Operations
Manager
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2. Today’s Webinar…. Phones will be muted until the end.
If you have any questions, please use the Q & A feature to the right (Bryan and Tae are available to answer questions).
At the end of today’s session, you will be prompted to complete a brief survey.
This presentation is currently available at under the link “About Senate Bill 70”

3. SB 70 Update As of 8/3/2011 Cohort Default Rate (CDR)
How SB 70 affects New Cal Grant Applicants
How SB 70 affects Renewal Cal Grant Recipients
Changes to processing Renewal Recipients

4. 1. Senate Bill (SB) 70, the education finance trailer bill for the 2011 Budget Act, requires Cal Grant-participating institutions with more than 40 percent of their undergraduate students borrowing federal student loans to maintain a three- year Cohort Default Rate (CDR) of less than 24.6 percent in the academic year and less than 30 percent for each year following.
SB 70 – 1. CDR

5. Institutions with MORE than 40% borrowing Federal Student Loans
These Institutions must maintain a three-year Cohort Default Rate (CDR) of less than 24.6% in the and less than 30% for each year following.
List of all Cal Grant participating Institutions
Institutions with 40% or LESS borrowing Federal Student Loans
These institutions are NOT affected by SB 70’s CDR requirement
SB 70 – 1. CDR

6. CSAC Homepage

7. How does SB-70 affect New Cal Grant Applicants?
SB 70 – 2. New Applicants

8. Student fills outs FAFSA
Patten College 4 4 9
Student Lists an ineligible school on their FAFSA
SB 70 – 2. New Applicants

9. Recipient’s Cal Grant Award on Hold
SB 70 – 2. New Applicants

10. SB 70 – 2. New Applicants

11. Student must log on to WebGrants for Students and requests a school change to an eligible school
SB 70 – 2. New Applicants

12. Student chooses school change to an eligible institution.
SB 70 – 2. New Applicants

13. Leave of Absence
SB 70 – 2. New Applicants

14. New Students who attend an ineligible CDR Institution……
Will remain on roster, but not payable.
They can only do a school change.
Should the school become eligible, they can receive payment.
Schools can customize roster to identify all new recipients.
SB 70 – 2. New Applicants

15. How does SB-70 affect Renewal Cal Grant Recipients?
SB 70 – 3. Renewals

16. Requires renewal Cal Grant recipients to meet the same maximum income and asset ceilings that initial Cal Grant recipients must meet.
Requires renewal Cal Grant recipients to meet the same financial need requirements that initial Cal Grant recipients must meet.
Renewal students who decide to remain at an affected institution will see a 20% reduction in their Award amount.
SB 70 – 3. Renewals

17. Scenario 1: Recipient is awarded a Cal Grant before the 2011-12 budget year
Scenario 2: Recipient is awarded a Cal Grant in the year and each year following.
The income and asset levels renewals must meet shall be the greater of:
The income and asset levels renewals must meet shall be the greater of:
The adjusted maximum levels in place in the year of renewal
The levels in place in the academic year
The adjusted maximum levels in place in the year of renewal
The levels in place in the year of the initial Cal Grant award.
SB 70 – 3. Renewals

18. Scenario 1 SB 70 – 3. Renewals Example
Student awarded Cal Grant A in
Income Ceilings for a family of four
$79,700
$80,200
$78,100
$81,500
SB 70 – 3. Renewals Example

19. Scenario 2 SB 70 – 3. Renewals Example
Student awarded Cal Grant B in
Income Ceilings for a family of Five
$49,200
$50,000
$50,600
$48,000
SB 70 – 3. Renewals Example

20. SB 70 – 3. Renewals

21. SB 70 – 3. Renewals (Need) What is the old renewal need? $100
What is the new renewal need under SB70?
Cal Grant A- Cal Grant A award amount + $1,500
Cal Grant B- At least $700
Cal Grant C- Cal Grant C award amount + $1,500
SB 70 – 3. Renewals (Need)

22. SB 70 – 3. Renewal Need

23. 20% Reduction in Cal Grant Award
**Only T/F has been reduced, Cal Grant B Access remains unaffected
SB 70 – 3. Renewals (Award)

24. What changes have been made to the renewal process due to SB 70?
SB 70 – 4. New Changes

25. SB 70 – 4. New Changes Making Grant Record Changes
Withdrawing ineligible students
Renewal corrections
New WebGrants reports available
School Changes
New Correspondence
SB 70 – 4. New Changes

26. Making Grant Record Changes
Schools may use the Grant Record Change process to withdraw renewal students who fail to meet income/asset ceilings or minimum need during the federal verification process.
In the past, schools could simply insert an annual need amount of less than $100 on the roster to withdraw a renewal student. However, since the minimum need formulas have changed through SB 70, schools can use the Grant Record Change process in WebGrants to withdraw ineligible renewal students.
SB 70 – 4. New Changes

27. Making Grant Record Changes
As indicated in the renewal disqualification letter, a student may be re-evaluated for the renewal process due to changing financial circumstances or an error on the FAFSA.
Non University of California (UC) institutions:
Students are instructed to contact the financial aid office of their school of attendance. Financial aid administrators who determine a FAFSA error has been made or approve professional judgment for disqualified Cal Grant students must make the ISIR correction for renewal consideration by the Commission. For the renewal cycle, the Commission will only automatically process ISIR corrections submitted by any school.
University of California (UC) institutions:
Students are instructed to make the ISIR correction themselves on the website and not contact the UC financial aid office. UC financial aid administrators will determine if the ISIR correction submitted by the student will impact their Cal Grant eligibility. The UC financial aid administrator should submit a grant record change (G-21) in WebGrants for any disqualified students who need renewal re-processing. Complete the G-21 with the pertinent data, including which ISIR transaction number is to be processed in the “reason” section.
SB 70 – 4. New Changes

28. SB 70 – 4. New Changes (Grant Record Changes)
Paper Form
WebGrants
SB 70 – 4. New Changes (Grant Record Changes)

29. SB 70 – 4. New Changes (Report)
The Disqualified Renewal Students Report
This new report lists prior year Cal Grant recipients/students who were disqualified for failing to meet the income and asset ceilings and/or minimum need requirements.
Data file format available as of August 1.
File layout under Help section in WebGrants.
SB 70 – 4. New Changes (Report)

30. SB 70 – 4. New Changes (Report)

31. SB 70 – 4. New Changes (School Changes)
If a renewal student, who currently attends an SB 70 school, changes his/her school of attendance from that institution, they will not be able to change it back to the SB 70 school.
Once a school change from an affected institution is made, that student will no longer be able to receive payment at the SB 70 school
SB 70 – 4. New Changes (School Changes)

32. Renewal Disqualification
Letter
Students who did not meet the income and asset ceilings and/or minimum need criteria during the renewal process were notified of their disqualification from the Cal Grant program through a new correspondence letter (enclosed) that lists the reason(s) for their disqualification.
SB 70 – 4. New Changes (CORR)

33. SB 70 – 4. New Changes (CORR) Renewal CDR School
Although SB 70 does not allow the payment of new Cal Grant awards for students attending a Cal Grant school that fell below the 24.6 percent CDR rate, a limited exception is made for students enrolled at the affected institution during the academic year before the academic year.
The renewal students at these affected institutions are mailed this letter notifying them of the potential decrease in their Cal Grant award if their application meets the renewal financial requirements.
SB 70 – 4. New Changes (CORR)

34. Thank You for Participating. Please contact us at: SchoolSupport@csac
Thank You for Participating! Please contact us at: or