California students will no longer be able to use state scholarships to pay tuition at most for-profit colleges under the final budget plan lawmakers are expected to send Gov. Jerry Brown today.
The move would eliminate Cal Grants for more than 11,000 students at schools like Heald College, ITT Technical Institute and University of Phoenix.
The budget would cut $103 million from the Cal Grant program by 2013-14 by imposing new performance standards that colleges must meet to receive the money, and by reducing scholarship amounts for students at private schools.
The policies take clear aim at private career colleges, which have come under scrutiny by federal officials for profiting off government loans that many students cannot repay. But the action also is another move to shift the cost of higher education from California's general taxpayers to its students and the institutions they attend.