The agency that administers California’s need-based student-aid program will be unable to distribute Cal Grants to college students until a state budget is approved.

And as California legislators remain at odds over a budget for the 2007-8 fiscal year, which began on July 1, the prospects for a resolution before classes start look dim, according to a research analyst for the Institute for College Access & Success, a nonprofit advocacy group.

About 266,000 students are expected to receive Cal Grants this academic year to help cover tuition, books, housing, and other costs, the institute said. Student-aid offices at colleges across the state are handling the situation differently, the institute added. Some campuses are using institutional funds to temporarily cover costs for students until the Cal Grants can be distributed. Others are giving students extra time to pay bills by delaying charges until the Cal Grants arrive. —Sara Hebel