Student aid in California: A new master plan needed
UC Davis students sort through donations that will be stocked in the university’s food pantry.
Credit: Courtesy of UC Davis
Higher education is under attack. And yet, even amid political turmoil and federal uncertainty, historic numbers of students are applying for financial aid. In the 2025-26 financial aid cycle, California received 2.2 million financial aid applications. Students want access to higher education.
As the country recovers from a 43-day federal government shutdown and a new financial aid season begins, students nationwide are facing increasing barriers. Without federal leadership, states must step up with bold vision and action. In California, there are 6.8 million adult learners who need education and job training to access opportunities and social mobility. For their sake, and for our own future, California needs to lead the way for other states and create a college affordability master plan.
Because of California’s elected leaders, who boldly imagined our state’s financial aid system, I was able to graduate with a bachelor’s degree, become a teacher and earn my doctorate by the age of 30. I went from being the first in my family to earn a degree to dedicating my career to public service. I now lead the California Student Aid Commission — the largest financial aid system in the country. My journey is not unique, but it is a testament to what can happen when state leaders make college affordability their North Star.
Despite the 70-year-old Cal Grant program, too many students are still living in their cars. And countless more are forgoing higher education altogether or leaving money on the table because we have outdated financial aid eligibility criteria and aid that is not portable across systems.
Now is not the time to slow down or stay the course. Most states coordinate and align their segments of higher education, but those tools are operational and only focus on how states can keep the lights on for institutions. What California needs is a student-centered college affordability plan — one that any state could adopt and tailor to achieve student success at scale and close regional workforce gaps. Such a plan would address:
- Portability: Allow students to carry their financial aid with them from one college to another, as long as the institution is California-accredited and has a demonstrated track record of supporting students to degree completion and being able to obtain well-paying jobs after graduation. Students need seamless access to aid to complete their education, and cohort default rates are not the only measure of return on investment for students.
- Basic needs: Account for regional cost-of-living differences, recognizing that the costs of rent, food and transportation vary dramatically across the country. Long gone are the days when registration and fees were considered the only expenses for successful enrollment. A college affordability master plan maps out financial aid and includes basic needs resources as coordinated solutions.
- Expedite success: The time it takes a student to complete a degree or certificate program is a barrier connected to college affordability, institutional design and credit hours. Define success by rewarding institutions with low excess credits at completion, meaning students aren’t taking unnecessary courses, and higher persistence and completion rates. And create incentives for students with financial aid on-ramps from noncredit workforce training programs to credit education. A clear example is our need for nurses. Expedited success would create affordable pathways from certified nursing assistant education, which is typically a noncredit certificate, to registered nursing, which requires a bachelor’s degree.
California’s experience shows both what’s possible and what’s not enough. We’ve built the nation’s largest financial aid system, which administers nearly $3.9 billion in state funds to support students from every background. Even with this investment, the cost of living, a patchwork of programs, and a lack of attention to student success leave many students behind.
As we approach the 2026 election and new statewide leadership, the next generation of policymakers must put college affordability at the center of their policy agendas. The “California Student Aid Commission Student Success Blueprint” is a five-year strategic plan that seeks to help higher education provide affordable and equitable higher education opportunities for today’s students and future learners. But without collective action, we risk losing an entire generation of learners whose talent, ambition and potential our economy desperately needs.
It’s time to move beyond siloed and outdated plans like the California Master Plan for Higher Education. Students and families are ready for a College Affordability Master Plan in California. The question is whether we have the courage.
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Daisy Gonzales, Ph.D., is the executive director of the California Student Aid Commission.
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