California Budget Deal Cuts Cal Grants at Many For-Profit Colleges

The roughly $92-billion state spending plan signed late Wednesday by California Gov. Jerry Brown will prohibit many for-profit colleges from accepting financial-aid money in a program that serves low-income students. According to the Sacramento Bee, colleges will not be able to participate in the scholarship program, known as Cal Grants, if they do not meet new criteria regarding graduation and loan-default rates. The move will affect some 11,000 students statewide. The budget deal also reduces Cal Grant aid for students attending nonprofit private colleges in 2013 and again in 2014, the San Francisco Chronicle reported. The budget offers more money for the state’s two public university systems if they agree to freeze tuition rates and voters approve a tax increase.