BILL ANALYSIS                                                                                                                                                                                                    Ó

                                                                  AB 330
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          AB 330 (Chau)
          As Amended  January 23, 2014
          Majority vote 

           HIGHER EDUCATION    9-2         APPROPRIATIONS      12-3        
          |Ayes:|Williams, Bloom, Fong,    |Ayes:|Gatto, Bocanegra,         |
          |     |Fox,                      |     |Bradford,                 |
          |     |Jones-Sawyer, Levine,     |     |Ian Calderon, Campos,     |
          |     |Dickinson, Quirk-Silva,   |     |Eggman, Gomez, Holden,    |
          |     |Weber                     |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |Nays:|Chávez, Wilk              |Nays:|Bigelow, Allen, Wagner    |
          |     |                          |     |                          |
           SUMMARY  :  Requires postsecondary educational institutions to  
          provide their average student debt per graduate to the  
          California Student Aid Commission (CSAC) as a condition of  
          eligibility for the Cal Grant Program, requires CSAC to provide  
          this information on its Web site in a searchable database, and  
          requires a for-profit institution to include this information in  
          its School Performance Fact Sheet.  Specifically,  this bill  :  

          1)Requires postsecondary educational institutions that  
            participate in the Cal Grant Program to provide average  
            student loan debt information concerning graduates, as  
            defined, to CSAC.  Authorizes the University of California and  
            the California State University to comply with this  
            requirement by including student loan debt information, as  
            defined, in their annual financial aid reports and providing a  
            copy of the report to CSAC.  Provides an exemption for  
            California Community Colleges (CCC) from this requirement.

          2)Requires CSAC to make all of the following information from  
            Cal Grant participating institutions available in the  
            searchable database on the CSAC Internet Web site:  License  
            examination passage rates; Latest three-year cohort default  
            rate; Percentage of undergraduate student borrowers; and,  
            Average student loan debt information concerning graduates.


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          3)Requires a for-profit institution that must provide its  
            students with a School Performance Fact Sheet (SPFS) pursuant  
            to the Private Postsecondary Education Act to include  
            information regarding the average student debt of its  

          4)Requires the information regarding average student loan debt  
            to be calculated and reported as specified. 

           EXISTING LAW  :

          1)Establishes the Cal Grant Program under the administration of  
            CSAC, and establishes eligibility requirements for awards  
            under the program for participating students attending  
            qualifying institutions.  As a condition for participation in  
            the program, existing law requires each Cal Grant  
            participating institution to annually report specified  
            information to CSAC, which CSAC is required to provide on its  
            Internet Web site in a searchable database.  (Education Code  
            (EC) Section 69433.2)

          2)Provides, among other things, for student protections and  
            regulatory oversight of private postsecondary schools in the  
            state pursuant to the California Private Postsecondary  
            Education Act of 2009.  The Act is enforced by the Bureau for  
            Private Postsecondary Education (Bureau) within the Department  
            of Consumer Affairs, exempts specified institutions from all,  
            or a portion of, its provisions, and requires an institution  
            to provide a prospective student prior to enrollment with a  
            SPFS, which is required to contain specified information  
            relating to the educational program.  (EC Section 94800, et  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor and absorbable costs to the UC, CSU, Bureau and  

           COMMENTS  :   Average student debt data  .  According to data from  
          The Institute on College Access and Success's (TICAS) Project on  
          Student Debt, 52% of students who graduated from reporting  
          public and private non-profit four-year universities in  
          California in 2012 took out student loans (ranking 42nd in the  
          nation) with an average debt of $20,269 (ranking 48th in the  
          nation).  According to TICAS, average student debt data is  


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          incomplete because most for-profit institutions and some  
          nonprofit colleges do not report their student debt data.   
          Limited institutional information regarding median borrowing  
          through federal financial aid programs can be found on the U.S.  
          Department of Education's Web site.  However, the USDE figures  
          do not take into account whether the student graduated;  
          sometimes resulting a misleading picture of affordability at  
          colleges with high drop-out rates.  This bill would require  
          institutions to report average loan debt of graduates in  
          certificate, associate degree, and baccalaureate degree  
          programs. Further, this bill would require institutions to  
          include all known loan debt associated with the student's cost  
          of attendance, not just borrowing in federal loan programs.   

           Arguments in support  .  The California Federation of Teachers  
          argues that it is valuable to provide prospective students and  
          their families with information and tools to gauge college  
          affordability and that this bill will facilitate the ability of  
          California families to make informed financial and educational  
          decisions.  The California State Student Association notes that,  
          while CSU is one of the most cost-effective public universities  
          in the country, it is important that students be able to easily  
          compare college tuition and have a better understanding of the  
          true cost of college before they start.

           Arguments in opposition  .  American Career College/West Coast  
          University argues that the regulations implementing AB 2296  
          (Block), Chapter 585, Statutes of 2012, requiring additional  
          SPFS disclosures, are only now being drafted and that this bill  
          will have the effect of piling on new requirements while  
          institutions are in the midst of understanding how AB 2296 will  
          be implemented. The University of Phoenix (UOPX) has requested  
          amendments to this bill to conform the disclosure requirements  
          to those required under federal law.  Specifically, UOPX notes  
          that the information mandated in this bill differs from existing  
          mandates pursuant to the federal "Gainful Employment" rules and  
          the Integrated Postsecondary Education Data System (IPEDS),  
          resulting in institutions being required to provide one data set  
          to comply with GE, a different data set to comply with IPEDS and  
          a different data set to comply with AB 330.  These differing  
          requirements create confusion for students and duplicative and  
          costly data gathering requirements for institutions.  



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          Analysis Prepared by  :    Laura Metune / HIGHER ED. / (916)  
                                                                FN: 0002984