Decreasing Student Debt: The Middle Class Scholarship
Issue: Defending Workers & Families
Target Level of Office: State
Policy Origin: California State Assembly
Poilcy/Bill Number: Assembly Bill 94
Link: www.YEONetwork.org/2013policy/?i=188
Summary Narrative of the Policy: AB 94 establishes the Middle Class Scholarship, which is a new
program beginning in the 2014-2015 academic year that provides undergraduate students with
family incomes up to $150,000 a scholarship to attend University of California (UC) or California
State University (CSU) campuses.
Relevant Talking Points & Important Information:
• The largest American tax base, the middle class is traditionally the image of the American
Dream – educated, home-owning, on the road to success, and with enough financial
means to cover everyday expenses and the rainy day fund. However, since the 2008
recession, this vision of the middle isn’t as secure and attainable as it once was.
• The economic downturn and glacial recovery have devastated low-income and middle
class families. In fact, according to data compiled by Moyers & Company, a typical
American household makes less than it did 25 years ago. However, postsecondary
education and credentials remain key to economic mobility and competitiveness for
individual Americans and the nation.
• Yet CLASP found that over the last three decades, college costs have soared, rising nearly
four times faster than median family income and two and a half times faster than the
maximum Pell Grant. Financial aid has not filled the growing gap, and “unmet financial
need”—the share of college costs not covered by financial aid or what the family is
expected to contribute—has risen sharply. According to data from the National Center
for Education Statistics, half of community college students had unmet financial need in
2007- 08, averaging $4,500 annually, as did 43 percent of students at public four-year
colleges, with their unmet need averaging $6,400 per year.
• AB 94 showcases California’s commitment to bolster and develop the middle class
by making higher education affordable for all families. The Middle Class Scholarship
reduces student fees at UC and CSU campuses by up to 40 percent for California families
making under $100,000 and 10 percent for families making under $150,000- students
who, traditionally, would be ineligible for traditional state and federal assistance.
8
State Level
Policy
2014 Book