Commission Unanimously Approves Alternative $10 Million Budget Cut to EdFund to Save Crucial Cal Grant Services to 'First Generation' and Low-Income Students
SACRAMENTO, Calif.,- Acting to restore the safety net of financial aid to thousands of California students, the California Student Aid Commission (Commission) unanimously voted to reduce the expenses of EdFund, its loan services auxiliary organization. The Commission's prudent action was taken to prevent disruption in the administration of Cal Grants and other financial aid programs to California students.
California's proven mechanism for directing minority and low-income students to college will be dismantled by Governor Schwarzenegger's veto of the Commission Cal Grant delivery system and outreach programs.
"This move will replace the cuts the governor aims to achieve through the budget veto action that would weaken the Cal Grant Program -- the heart and soul of access to college for so many bright young Californians," stated Barry Keene, Chair, California Student Aid Commission. "The effectiveness of Cal Grant services cannot be replaced -- no one else is equipped to devote resources and time exclusively to the singular goal of getting kids to college."
By reducing the EdFund expenses without reducing revenue, consistent with the Governor's direction, the state realizes an annualized savings of $10 million that can be allocated to prevent disruption of services to thousands of California students. With the current economic crisis, the Commission acted to reduce expenses such as incentive compensation and non-critical expenditures in the areas of travel and procurement.
"California's economic recovery depends on a highly trained workforce. Maintaining the opportunity of choice and access for kids who thought higher education was an impossible dream is economically smart," said Lorena Hernandez, Vice Chair, California Student Aid Commission.
The Cal Grant Program -- administered by the Commission -- targets low-income and minority students, providing guidance and one-on-one counseling proven effective in encouraging and directing students -- most from families who believe that college education is unachievable -- to successfully pursue college education.
From 2000 to 2009, the number of new and renewing Cal Grant recipients rose from 179,860 to 301,972, a 68% increase in demand from mostly "first generation" college students.
CONTACT: Louise Shroder, +1-916-464-8237, for California Student Aid
Commission
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