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Senate Bill 886 – Amends Existing Law To Eliminate The Requirement That The Student Aid Commission Provide Written Notice That A Student Is In Default On Loans Under The Federal Family Education Loan Program

CATEGORY: Public Education Matters
CLIENT TYPE: Public Education
DATE: Dec 06, 2023

Existing law requires the governing board of every community college district, the Trustees of the California State University, and the Regents of the University of California (if appropriate resolutions are adopted), and the Board of Directors of the College of the Law, San Francisco to adopt regulations withholding institutional services from students or former students who have been notified in writing that they are in default on a loan or loans under the Federal Family Education Loan Program.  Existing law requires the Student Aid Commission to give notice of the default to all institutions through which the individual acquired the loan or loans.

SB 886 amends existing law by removing the requirement that the Student Aid Commission give notice of default to all institutions through which the individual acquired the loan(s).

The bill renames the “Online Education Initiative Consortium” to the “California Virtual Campus” and makes change to the relevant Education Code sections in compliance with this name change.

Existing law establishes the Cash for College Program under the administration of the Student Aid Commission (the Commission).  The bill authorizes the Commission to allocate funds to regional coordinating organizations, as defined, to plan, coordinate, or conduct Cash for College workshop series within specific regions in the state.  The bill amends these provisions to permit the Commission to provide funding to an organization that is not part of a regional coordinating organization, including high schools and community-based organizations, but has a written partnership agreement with the commission or a regional coordinating organization, may offer free local and regional workshops through the Cash for College Program.

(SB 886 amends Sections 66022, 66770, 66771, 68101, 69551, and 89304 of, and repeals Sections 69615.4, 69618.8, and 70108 of, the Education Code.)

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