Crackdown on California for Profit Colleges
Poorly performing schools will be disqualified from key financial aid programs as Jerry Brown imposes stricter eligibility standards on schools participating in the Cal Grant programs. This move to size up the budget eliminates some of the biggest players in the for-profit college industry, to include the University of Phoenix. Last year, the University of Phoenix derived 86 percent of its revenue from federal student aid. If that figure rises above 90 percent, University of Phoenix will loose state-funded Cal Grants, and the school would no longer be eligible for federal student aid.