Gov. Gavin Newsom signed Assembly Bill 2251 on September 30, 2026, giving California college students a clearer path to request more financial aid when their real costs run higher than the school’s estimate. By the start of the 2027-28 academic year, every college in the Cal Grant program must publish how it calculates its cost of attendance and tell how students how they can ask for an adjustment.

Assemblymember Celeste Rodriguez of the San Fernando Valley wrote the bill, and Assemblymember Marc Berman of Menlo Park co-authored it. It passed both chambers without a single no vote. The rules are tied to Cal Grant eligibility, so they cover UC, CSU, community colleges and participating private colleges.

Families comparing what they’ll really pay out of pocket at a private colleges get the same protections as public schools.

Why It Matters

A school’s cost of attendance sets the ceiling on every dollar of financial aid a student can receive, including grants, scholarships and federal student loans. When that number understates rent or transportation, a student who has already hit the ceiling can’t accept more financial aid, even when the school has it to give.

That happens often in California. The College Costs Uncovered report from John Burton Advocates for Youth found 53% of the state’s public colleges use cost of attendance budgets below estimated regional costs. Students have to cover the difference by working longer hours and taking fewer classes, which can put their satisfactory academic progress and their financial aid at risk.

Understanding how to appeal your financial aid is also challenging

A March 2026 review by the same group (PDF File) found 43% of California public colleges don’t post their cost of attendance adjustment policies online. Even a family that knows its Student Aid Index can’t judge whether its rent fits the budget without a category breakdown, and 83% of campuses don’t publish one.

One of the biggest reasons students don’t finish college is because of financial concerns. Having accurate financial numbers is key to student success.

What AB 2251 Requires Colleges To Do

AB 2251 requires each college that can potentially receive a Cal Grant to show its budget math, accept adjustment requests for any expense category and explain the process on the same web page as its cost of attendance. The table below lists each requirement in the enacted text.

The law names car expenses outright, including gas, repairs and insurance. That helps students who bring a car to campus and spend more on driving than the transportation allowance assumes.

What The Law Doesn’t Change

AB 2251 creates no new grant money and doesn’t require colleges to approve any request. CalMatters reports the California Student Aid Commission expects $805,000 to $2.3 million in added Cal Grant spending. That estimate assumes approved adjustments rise 3% to 5% a year.

Families should still plan around the order of operations for paying for college rather than count on any adjustments.

The extra financial aid also may not be free money. The law requires schools to disclose that an approved request can result in grants or student loans, and many times additional financial aid typically comes as student loans. A dependent freshman already at the $5,500 federal student loan limit would likely see that room filled with a Parent PLUS or private student loan.

How An Adjustment Changes The Numbers

Take a hypothetical student whose campus budget is $30,000, including $12,000 for housing. If her actual lease runs $15,600, she is $3,600 over the allowance.

An approved adjustment raises her cost of attendance to $33,600, which lets the school award up to $3,600 more in financial aid. When grants and scholarships already cover tuition and fees, that new money arrives as a financial aid refund she can put toward rent.

This is important because even if she were to borrow private student loans, they can only lend up to the cost of attendance. Students need this cost of attendance to be accurate, even in the case where they are borrowing to pay for college.

How This Connects

We’ve reported on why colleges can’t just cut costs and what actually lowers the price. AB 2251 doesn’t lower anyone’s price. It makes the cost of attendance budget something a student can read, check against a real lease and challenge in writing.

It also makes it easier for students who are borrowing to pay for college to ensure that they can get enough to actually cover their costs. Their real costs.

What’s Next

Colleges have until the start of the 2027-28 academic year to post their policies, and they will set their own review timelines. This means that students applying to college now and expecting to receive their financial aid awards in early 2027 will be the first ones that can take advantage of these new rules.

However, families don’t have to wait. Federal law already lets financial aid administrators adjust a student’s cost of attendance case by case, so ask the financial aid office for its process now. Our financial aid calculator can show where your need stands before you ask.