AB 288 Guides to Prevent Scholarship Displacement

WHAT IS AB 288?

Assembly Bill 288, the California Ban on Scholarship Displacement Act is a bill that Governor Gavin Newsom signed into law on September 30, 2022. This means that starting with the 2023-24 academic year, all public and private colleges in CA will be prohibited from displacing student’s private scholarships if they are eligible for the federal Pell Grant or financial aid via the California Dream Act (CADAA). This law supports college affordability and postsecondary attainment by preserving the value of scholarships to supplement, not supplant a student’s full range of financial aid resources.

WHAT IS SCHOLARSHIP DISPLACEMENT?

Scholarship displacement happens when a college or university reduces a student’s financial aid after the student has received a private scholarship. Colleges typically reduce institutional gift aid by an amount equal to the dollar amount of the scholarship, leaving students with a zero-net benefit for their effort and forcing them to seek alternative funding sources like excessive loans or juggling full-time employment.