Student aid cuts to generate half of expected savings
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A new California law that cuts off Cal Grants to colleges whose students default on federal loans at high rates will produce less than half of the previously expected budget savings – thanks to a data mix-up by the U.S. Department of Education.
An analysis of the new, corrected data released April 21 by the department shows the state will save an estimated $8 million, rather than the previously expected $19 million savings, said analyst Judy Heiman of the nonpartisan Legislative Analyst's Office.
The new rule signed into law by Gov. Jerry Brown on March 24 aimed to save money while also penalizing
