New California Law Denies State Aid to Many For-Profits

Nearly half of the for-profit colleges in California are being kicked out of a state student aid program because of their default rates, The San Francisco Chronicle reported. Under a California law, those with three-year loan default rates of 24.6 percent or higher are barred from having their students receive Cal Grants. About 4,900 Cal Grant recipients were enrolled at this colleges when the law took effect in the fall. Those who had been previously enrolled were allowed a partial grant.