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The California State
University announced Wednesday, July 8, 2009, that it will defer State
University Fee payments for the summer and fall 2009 term for CSU
students who experience delays receiving Cal Grants from the California
Student Aid Commission. The State Controller and the CSAC have informed
higher education institutions of delays in the payment of Cal Grant A
and B awards. The state began issuing IOUs due to a cash shortage
resulting from failure to adopt and sign a state 2009-10 budget that
closes the projected $26.3 billion General Fund shortfall.
To provide for CSU’s financially-neediest students who rely on Cal Grant
A and B awards, CSU campuses will delay student payment of the State
University Fee until the CSAC is able to disburse Cal Grant funds to
campuses. Cal Grant B recipients also receive a stipend from the state.
However, due to the proposed system budget reductions of $584 million
and state cash-flow problems, the CSU is not in a position to
automatically cover these cash stipends to students until the CSAC
actually distributes the funds.
While these students will receive their federal Pell Grant awards in
addition to other forms of financial aid, some students may still face a
financial hardship to enroll for the summer and fall semesters. In these
cases, CSU campuses will – on a case-by-case basis – provide short-term
emergency loans to the neediest students, provided students have
exhausted all alternative funding sources.
“CSU is committed to ensuring that this situation with the Cal Grants
does not hurt our students' academic progress,” said CSU Chancellor
Charles B. Reed. “Many students and their families rely on Cal Grants to
cover the cost of education. We will do what we can to provide for the
neediest of students, many of whom are the first of their family to
attend college.”
New Awards
Gov. Schwarzenegger has also proposed that the state of California not
fund new awards in the 2009-10 budget. While a legislative conference
committee rejected that proposal, budget negotiations within the state
Capitol are ongoing. At this time, CSAC is warning all students that new
awards are considered tentative pending a final budget.
More than 60,000 CSU students receive Cal Grant awards.
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