An act to amend Section 69432.7 of the Education Code, relating to student financial aid.
AB 2251 would amend the Cal Grant Program’s qualifying-institution rules to require participating postsecondary institutions to adopt and implement a formal cost of attendance (COA) policy and adjustment process by the start of the 2027-28 academic year. The bill is aimed at making institutional COA budgets more accurate and more transparent, and at ensuring students can request adjustments when their actual expenses exceed the school’s published allowance. It also requires institutions to publicly explain the data sources and assumptions used in COA calculations and to provide student-friendly information about how to seek adjustments.
The bill specifies that COA adjustment processes must cover a broad range of student expenses, including housing, food, transportation, books and supplies, dependent care, disability-related costs, computers, and uninsured medical, dental, or optical expenses. Institutions would have to accept electronic or paper requests, decide them within 30 business days once complete, allow requests during enrollment, and provide a second review process if requested. The measure ties these requirements to Cal Grant eligibility, meaning institutions must comply to remain qualifying institutions under the program.
AB 2251 would amend Education Code Section 69432.7, which governs Cal Grant eligibility and the definition of a qualifying institution. In practical terms, it adds a new institutional compliance requirement for public, private, and nonprofit postsecondary institutions that participate in Cal Grant: they must establish a COA policy and adjustment process consistent with federal Higher Education Act standards. This would affect how schools calculate financial aid budgets and how they respond to individual student requests for higher aid based on actual living and attendance costs. The bill does not create a new appropriation, but it could require administrative changes at colleges and universities and additional oversight by the California Student Aid Commission.
The overall sentiment reflected in the bill’s legislative history appears strongly supportive. The measure passed committee with unanimous votes in the available history, including a 9-0 vote on April 14 and a 7-0 vote on the later committee action referenced in the bill history. The committee recommendation was to place the bill on the consent calendar, which typically indicates little opposition in committee and a relatively noncontroversial policy direction. The bill’s findings also frame it as a student-support and transparency measure responding to documented gaps in COA accuracy and disclosure.
There is little visible opposition in the available record, but the bill does impose new operational duties on institutions, which could be the main area of concern. Colleges and universities would need to publish more detailed COA methodology, process more individualized adjustment requests, meet response deadlines, and potentially expand aid awards when adjustments are approved. The policy may also raise questions about administrative burden, consistency in decision-making, and the fiscal effect of increased aid eligibility, even though the bill is not itself an appropriation. The bill’s supporters appear focused on affordability, transparency, and access, while any concerns would likely come from institutions that must implement the new procedures.