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Middle Class Scholarship Fund

Posted by Arnold on 06/26/14, 11:37

2 years ago, AB 1501 was passed to the California Senate committee on appropriations for approval. This bill would have provided middle class UC, CSU, and California Community College students with an (up to) 66% tuition subsidization... but it never passed due to an impasse. The Middle Class Scholarship Fund (MCSF) described in AB 1501 would have been funded by closing a tax loophole for corporations doing business in California, but special interests wouldn't allow for that.

Now, just about 1 year ago, California voted to finally establish the MCSF by passing AB 94. Through this bill, the MCSF would be funded from an education sub-account created through Proposition 39, which was passed in late 2012. Fast forward to today, and the MCSF Program will be commencing with the 2014-15 academic year, but with a different benefit plan than was originally intended in AB 1501. The biggest disappointment in the program is that there is a maximum tuition subsidization of only 40%.

In order to qualify for funds from the MCSF now, a student (undergraduates only) must:

• have an annual household income less than $150,000 (at this income level, only 10% aid is provided; each $1,000 below $150,000 will increase scholarship award amounts by 0.6%, up to a maximum of 40%)
• be a California resident or exempt from paying non-resident tuition
• file specified financial aid forms (i.e. FAFSA or an application determined by the university to be equivalent to the FAFSA)
• make timely applications for publicly funded financial aid if they are eligible
• satisfy specified requirements for a Cal Grant award
• maintain a minimum 2.0 GPA

Beginning this year (2014-15 fiscal year), the MCSF will be funded with $107 million. In 2015-16, that amount will increase to $152 million. 2016-17 will have about $228 million in funds, and 2017-18 (and for each fiscal year thereafter), $305 million will be available for the MCSF.

WKRF: 66% Tuition Reduction

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