California Announces Financial Aid Plan to Keep Students Out of Debt
California has proposed a new financial aid plan to help students avoid debt, reported The Los Angeles Times.
The plan would supplement existing state aid programs and eliminate the need for student loans for nearly 400,000 students in the Cal State and University of California systems, the Times reported. In addition, community college students would receive grants to cover the cost of their first year.
Students will still have access to existing financial aid such as Pell Grants, state programs like Cal Grants, university grants, and Middle Class Scholarships. Parents making more than $60,000 per year would be expected to contribute, and students would be expected to work part-time jobs throughout the year.
The new program would cost around $1.6 billion per year, but that price could decrease as the state increases minimum wage and students earn more in their jobs, the Times reported.
The Los Angeles Times