California faces a budget deficit this year of $26.6-billion. A big target of budget cutters in the Legislature is Cal Grants, the state’s main student-aid program. Under one proposal, which could save the state $19-million per year, students at colleges with both high student-loan-default rates and large numbers of borrowers would be ineligible for Cal Grants, starting this fall. Fifty colleges with enrollments of more than 500 students (shown in the pink area below) would lose student aid under the plan.
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