How the California Ban on Scholarship Displacement Act will affect CPP students

by Nate Macay, November 15, 2022

On September 30, Gov. Gavin Newsom approved Assembly Bill 288, which eliminates crowding-out of scholarships at state public and private institutions and ensures that schools do not cut institutional grants and funding.

If a student previously received a scholarship, their financial aid was reduced so that the student received no more funds than the cost of attendance. The decline caused some students to forego additional funds to support themselves

According to Charles Conn, Associate Director of Financial Aid and Scholarships, students should receive the greatest possible assistance, but there are times due to federal regulations when a discount is required to keep the student within the total cost of attendance.

“It depends on the student’s situation,” Conn said. “The formula of all aid is: Cost of Attendance minus EFC equals a student’s needs, but at the end of the day, all sources of help cannot exceed a student’s Cost of Attendance.”

The new law, which comes into effect for the 2023-2024 school year, prevents institutions from depriving the student of additional aid.

Christina Tangalakis, president of the associate dean of student financial services for the California Association of Student Financial Aid Administrators, said students should always feel empowered to receive resources.

“Grants are still a valuable resource,” Tangalakis said, adding that “this law should help stabilize and maximize funding.”

Nate Macay | The Polypost

According to Conn, if a student receives an outside bursary to help pay for the visit, the financial aid would initially reduce credit as students prefer to get the most free support possible.

“Our goal is always for students to receive as many gifts or free grants as possible,” said Conn. “If they get another source of funding that counts as gifting, we want them to get that, but we don’t want to take any of the money, it doesn’t do us any good and it doesn’t do our students any good.”

Conn mentioned that CPP encourages students to apply for private scholarships, adding that the law does not change financial aid.

“It was really about the independent or private universities that might have had policies that they were using to reduce institutional funding,” Conn said. “If the school says the student is entitled to institutional money, they should still receive the institutional money regardless of whether they receive private money.”

Hotel management student Katie Wilson believes students should make the most money possible when they go to college.

“It can be difficult to pay tuition,” Wilson said. “Especially as a public university, there should be more opportunities for students to receive funding.”

Featured image by Nate Macay