ROSEVILLE-
More than a million dollars targeted for Heald College students who receive the Cal Grant Scholarship Award was halted Friday by the state’s Student Aid Commission.
The payments were suspended to about 4,500 of Heald’s 13,292 students at 10 campus’ in Northern California.
The reason is simple in the eyes of the commission. Heald College is in bad shape financially.
“This is a situation where we know they’re on the brink,” Executive Director of the Student Aid Commission Diana Fuentes-Michel said. “Putting money into a student’s education that we don’t know whether they are going to be able to complete is a real concern.”
In order for California colleges to receive Cal Grants, they must provide proof of administrative capacity and financial stability. Heald missed the deadline back in December, and just last week the college told the commission it would not be able to provide the documents needed.
“If they’re not able to demonstrate financial stability..administrative capacity, our responsibility is not only to the students, but the state of California,” Fuentes-Michel said. “The tax payers fund the Cal Grant program and we want to make sure a Cal Grant is used and the student is getting an effective and quality education. And they’re going to be able to complete their program.”
The Commission was set to give Heald College students $21 million in 2015.
The college, with local campus’ in Roseville and Rancho Cordova, is owned by Orange County-based Corinthian Colleges, which indicated last Summer they expect to final for bankruptcy.
“As a student,” continued Fuentes-Michel. “I’d be very concerned. Halting the payments means they’re wondering whether or not the school is going to continue. It’s the responsibility of Heald to demonstrate that they are going to be in business, and they are financially solvent.”
Calls to several of Heald College’s representatives went unreturned.
A special hearing is set for Feb. 20 in order to give Heald one last chance at providing the proper documents.
