Bill Text: CA AB2507 | 2023-2024 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Student financial aid: Students at Risk of Homelessness Emergency Pilot Program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-07-29 - In committee: Hearing postponed by committee. [AB2507 Detail]
Download: California-2023-AB2507-Introduced.html
Bill Title: Student financial aid: Students at Risk of Homelessness Emergency Pilot Program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2024-07-29 - In committee: Hearing postponed by committee. [AB2507 Detail]
Download: California-2023-AB2507-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 2507
| Introduced by Assembly Member Friedman |
February 13, 2024 |
An act to add and repeal Article 17 (commencing with Section 69850) of Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, relating to student financial aid.
LEGISLATIVE COUNSEL'S DIGEST
AB 2507, as introduced, Friedman.
Student financial aid: Students at Risk of Homelessness Emergency Pilot Program.
Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education.
Existing law establishes the University of California, under the administration of the Regents of the University of California, as one of the segments of public postsecondary education in this state. The University of California provides instruction and performs research at the 10 campuses it operates and maintains in Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego, San Francisco, Santa Barbara, and Santa Cruz.
This bill, until January 1, 2029, would establish the Students at Risk of Homelessness Emergency Pilot Program under the administration of the commission
to award interest-free loans for housing costs to eligible undergraduate students attending the University of California’s Berkeley, Irvine, and Los Angeles campuses who are at risk of disenrolling from the campus, or are at risk of homelessness, due to the inability to pay for housing. The bill would require the commission to enter into a contract with a nonprofit organization that has existed for more than 50 years and operates an interest-free loan program in more than one county in the state for the nonprofit organization to award loans to eligible students. The bill would create the Emergency Students Facing Housing Crisis and Homelessness Revolving Fund as the initial depository of all moneys appropriated, donated, or otherwise received for the program, and upon appropriation by the Legislature, would require the commission to distribute moneys in the fund to the nonprofit organization to award loans to eligible students. The bill would require the nonprofit organization to annually report to the
commission the number of students who qualified for a loan and the number of students awarded a loan. The bill would require the commission to submit an annual report to the Legislature that includes this information.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
(a) The Legislature recognizes the crushing burden of student debt on hundreds of thousands of students and graduates, the need to financially support California students at risk of homelessness without onerous interest payments accelerating the debt crisis, and the lack of state budget resources to fully fund the needs of California students with grants for housing costs.(b) It is the intent of this act to award loans for housing costs to students attending the University of California’s Berkeley, Irvine, and Los Angeles campuses who are at risk of disenrolling from the university, or at risk of homelessness, due to the inability to pay for housing.
SEC. 2.
Article 17 (commencing with Section 69850) is added to Chapter 2 of Part 42 of Division 5 of Title 3 of the Education Code, to read:Article 17. Students at Risk of Homelessness Emergency Pilot Program
69850.
This article shall be known, and may be cited, as the Students at Risk of Homelessness Emergency Pilot Program.69851.
As used in this article, unless the context requires otherwise, the following definitions apply:(a) “Financial need” means a student who is eligible for a federal Pell Grant.
(b) “Fund” means the Emergency Students Facing Housing Crisis and Homelessness Revolving Fund established in Section 69853.
(c) “Institution” means the University of California, Berkeley, the University of California, Irvine, or the University of California, Los Angeles.
(d) “Loan” means a loan awarded to a student under the program.
(e) “Nonprofit organization” means a nonprofit organization that has existed for more than 50 years and operates an interest-free loan program in more than one county in the state on and before January 1, 2025.
(f) “Program” means the Students at Risk of Homelessness Emergency Pilot Program established in Section 69852.
(g) “Satisfactory academic progress” means those criteria required by applicable federal standards published in Title 34 of the Code of Federal Regulations.
69852.
(a) The Students at Risk of Homelessness Emergency Pilot Program is hereby established under the administration of the commission to award loans for housing costs to students attending institutions who are at risk of disenrolling from the institution, or are at risk of homelessness, due to the inability to pay for housing.(b) The commission shall enter into a contract with a nonprofit organization for the organization to award loans to eligible students. The contract may include a provision that authorizes no more than 2 percent of the funds provided to the nonprofit organization for purposes of this article to be used by the nonprofit organization for its administrative costs under the program.
(c) A student attending an institution may be awarded a loan if the student satisfies all of the following requirements:
(1) Demonstrates financial need.
(2) Is enrolled at least part-time in an undergraduate program at an institution.
(3) Demonstrates that they are at risk of homelessness.
(4) Maintains satisfactory academic progress.
(d) The nonprofit organization contracted pursuant to subdivision (b) shall be responsible for all of the following:
(1) Upon the receipt of funds from the commission for purposes of this article, determining student eligibility for a
loan.
(2) Determining the amount of a loan. The amount of a loan shall not exceed a reasonable estimate of housing costs, as determined by the nonprofit organization, and shall be based on the financial need of the student.
(3) Awarding loans to students.
(e) A loan awarded to an eligible student pursuant to this article shall have no interest rate. A student shall not be charged a fee on a loan awarded pursuant to this article or to participate in the program.
(f) The standard repayment term for a loan awarded under the program shall be no more than four years, as determined in the contract entered into pursuant to subdivision (b). The standard commencement and rate of loan repayment shall be determined in the contact entered into pursuant to
subdivision (b).
(g) A student who is in default on any federal student loan, state student loan, or student loan issued by the University of California is not eligible for a loan under the program.
(h) (1) A student shall confirm in writing that the student satisfies all of the requirements for loan eligibility.
(2) A student seeking a loan shall authorize the nonprofit organization contracted pursuant to subdivision (b) to access any information pertinent to certifying that the student meets all of the requirements for loan eligibility.
(3) The nonprofit organization contracted pursuant to subdivision (b) shall certify that the student meets all of the requirements for loan eligibility before awarding a loan to the student.
(i) (1) The nonprofit organization contracted pursuant to subdivision (b) shall submit an annual report to the commission that includes, but is not limited to, both of the following for the previous award year:
(A) The number of students who qualified for a loan.
(B) The number of students awarded a loan.
(2) The commission shall submit an annual report to the Legislature, pursuant to Section 9795 of the Government Code, that includes the information submitted pursuant to paragraph (1).
(3) The information in paragraphs (1) and (2) shall be disaggregated by institution and the age, gender, race, and ethnicity of students.
