Most for-profits operating in California have been deemed ineligible to participate in Cal Grants, the state's generous need-based financial aid program. The California Student Aid Commission on Tuesday released a list of 154 ineligible institutions or branch campuses, 137 of which are for-profits, including the University of Phoenix. The rest are mostly small, private religious institutions. The program's rules were tightened to save money amid California's budget crisis, and were drafted in such a way that they were aimed specifically at for-profits. For example, they apply only to colleges where more than 40 percent of students take out loans. That effectively exempts community colleges, which don't charge enough in tuition for federal loans to be a major issue.
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