California finds solution to save distance learners’ financial aid

Tens of thousands of online California students are no longer at risk of losing federal financial aid after the state moved quickly to create a new system for addressing complaints from students against out-of-state colleges and universities. At least 60,000 Californians were affected by a new federal rule, which the U.S. Department of Education began implementing July 22. That rule requires the state to have a complaint process for students living in California and enrolled in out-of-state, online degree or certificate programs at public and private nonprofit colleges. Without such a process, students would have lost access to federal aid such as Pell Grants, loans and work-study.
Earlier last week, the Trump administration notified out-of-state online providers and the state that these students would lose federal aid because California doesn’t have a system for handling student complaints. Consumer advocates claimed that the Trump administration delayed implementing the rule to cut back on regulations affecting colleges. The 2016 Obama-era rule requires the state to have such a system if students enrolled in these out-of-state online programs receive financial aid. The administration attempted to delay implementing the regulation, but a judge ruled in April they could not.