70026.5.
As used in this article, unless the context requires otherwise, the following definitions apply:(a) An “academic year” is July 1 to June 30, inclusive. The start date of a session shall determine the academic year in which it is included.
(b) “Cost of attendance” means the student’s tuition and fees, books and supplies, living expenses, transportation expenses, and any other student expenses used to calculate a student’s financial need for purposes of student aid programs under Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.).
(c) “Expected family contribution” means a student’s expected
family contribution calculated according to the federal methodology pursuant to subdivision (a) of Section 69506 as established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070 et seq.).
(d) (1) “Financial need” means, as used in subdivision (a) of Section 70027, the cost of attendance minus the expected family contribution.
(2) “Financial need” means, as used in subdivision (b) of Section 70027, the cost of attendance minus the student aid index.
(e) “Foster youth or former foster youth” means a person in California whose dependency was established or continued by a court of competent jurisdiction, including a tribal court, on or after
the person’s 13th birthday and who is no older than 25 years of age at the commencement of the academic year.
(f) “Gift aid” means all financial aid designated for the student’s educational expenses, including a grant, scholarship, tuition waiver, fellowship stipend, or other third-party payment, that is not a loan
or pursuant to a work study program.
(g) “Institutional financial gift aid” means financial gift aid that is paid for by the institution of higher education from its funds and the recipient of the aid is selected by the institution.
(h) “Institution of higher education” or “institution” means any public or private postsecondary educational institution in the state that receives, or benefits from, state-funded financial assistance or
enrolls students who receive state-funded student financial assistance.
(i) “Private scholarship” means financial assistance awarded to students based on one or more factors, including, but not limited to, academic merit, talent, or a particular area of study, by a private company, foundation, or nonprofit organization, or a public charity or service group.
(j) “Scholarship displacement” means the reduction of institutional financial gift aid due to private scholarship awards.
(k) “Student” means any foster youth or former foster youth who is a
California resident and who enrolls in any institution of higher education to obtain an undergraduate degree.
(l) “Student Aid Index” means, with respect to a student, an index that reflects an evaluation of a student’s approximate financial resources to contribute toward the student’s postsecondary education expenses for the academic year.
70027.
(a) Commencing with the 2023–24 academic year, an institution of higher education shall not reduce the institutional financial gift aid offer of a student who is eligible to receive a federal Pell Grant award or financial assistance under the California Dream Act for an academic year as a result of private scholarship awards designated for the student unless the student’s gift aid exceeds the student’s annual cost of attendance.(b) The institution may reduce the institutional financial
gift aid offer of a student who is eligible to receive a federal Pell Grant award or financial assistance under the California Dream Act by no more than the amount of the student’s gift aid that exceeds the student’s annual cost of attendance.
(c) The institution shall not consider receipt or anticipated receipt of private scholarships when considering a student who is eligible to receive a federal Pell Grant award or financial assistance under the California Dream Act for qualification for institutional financial gift aid.
(d) To ensure financial
gift aid is maximized, an institution is encouraged to implement efforts to avoid scholarship displacement through consultation with scholarship providers and students to avoid situations where institutional financial gift aid and private
scholarships can only be used for specific purposes.
(e) This article shall not be interpreted or implemented in a manner inconsistent with state or federal law. The provisions of this article are severable. If any provision of this article or its application is held invalid due to a conflict with federal requirements, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.