What happens if an eligible student does not receive financial aid after being granted a payment deferral?
Short answer
If an eligible student does not receive financial aid after submitting the required applications, the campus may require them to pay housing costs. However, the school must provide written notice and allow at least 30 days for payment. During this 30-day period, the school cannot assess late fees or penalties [https://legiscan.com/CA/text/AB2766/id/3442646].
What the bill or law says
Assembly Bill 2766 mandates that California Community Colleges and California State University campuses defer upfront housing costs until financial aid disbursement. This applies to students who have submitted the Free Application for Federal Student Aid (FAFSA) or the California Dream Act application. The bill specifies a safety net for cases where aid is not awarded. It states that if a student does not receive financial aid, the campus retains the right to require payment. Crucially, the legislation prohibits schools from denying housing placement or canceling assignments due to non-payment before aid arrives, provided the student has applied. Once it is clear that aid will not be received, the 30-day grace period rule activates [https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260AB2766#97AMD].
How it works in practice
In practice, this process begins when a student applies for housing and indicates their status as current or former foster youth or homeless youth. The housing application must include questions to identify these eligible students. If the student qualifies, they do not pay deposits or fees immediately. Instead, payment is deferred until their financial aid is disbursed. If the financial aid office determines the student is ineligible for aid, the housing office must send a written notice. This notice triggers the 30-day window. The student then has one month to arrange payment through other means. During this time, their housing spot remains secure, and no extra charges are added to their account. This structure aims to prevent students from losing housing simply because aid processing takes longer than deposit deadlines [https://legiscan.com/CA/bill/AB2766/2025].
What the source does not answer
The official bill text does not specify what happens if the student still cannot pay after the 30-day period ends. It does not detail whether the school must offer a payment plan or if eviction procedures begin immediately after the grace period. Additionally, the source does not clarify how "written notice" must be delivered, such as via email or physical mail. There is also no information on whether the 30-day period can be extended under extreme hardship circumstances. The bill does not define what constitutes a valid reason for not receiving aid beyond the submission of the FAFSA or Dream Act application [https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2766].