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University of Phoenix among 154 Calif. schools to lose Cal Grants


Silicon Valley / San Jose Business Journal ~ Tuesday, August 7, 2012 ~ Lisa Sibley

The California Student Aid Commission recently said about 154 schools are expected to be eliminated from participating in the student aid Cal Grant Program for the 2012-13 academic year.

This is expected to impact more than 14,500 students who attend the mostly for-profit schools, such as University of Phoenix, ITT Technical Institute, Kaplan College, and Heald College. University of Phoenix has a San Jose campus as does Heald College. In addition, the Associated Press reported that more than a dozen private colleges, including Christian ones, could be impacted.

Students are expected to be able to continue to receive the grants if they transfer to eligible institutions.

"California is the first state in the nation to set higher institutional standards than the benchmarks established by the federal government for its grants and loans," said Barry Keene, chair of the California Student Aid Commission, in a prepared statement. "The Commission has argued for years that the best way to protect students, parents and taxpayers is to make sure Cal Grants help students get into solid programs that deliver proven educational and career value. Eliminating schools with high loan default rates and low graduation rates is a sensible way to do that."

Cal Grants are funded by the state of California and do not have to be paid back.