New California Program Will Help Students With No High School Diploma Pay for College
Credit: Gary Coronado / Los Angeles Times / Getty Images- The federal government requires students to have a high school diploma or equivalent to qualify for financial aid.
- Students without a high school diploma can qualify for federal financial aid through an “Ability-to-Benefit” (ATB) pathway, either by completing six college credits or passing an approved exam.
- States can offer alternative ATB pathways with the Department of Education’s approval.
- California’s recently approved ATB pathway means students without high school diplomas can now be eligible for financial aid.
Qualifying for federal financial aid just became a lot easier for 4 million Californians without a high school diploma.
A newly approved state program, Ability-to-Benefit (ATB), gives these students the opportunity to prove they’re qualified for college or career school — without having a high school diploma or the equivalent.
Currently, the ATB pathway requires students to pay for and complete at least the first six credit hours of college courses or pass an approved, independently administered ATB test.
Starting in the 2025-26 academic year, California community college students will be able to demonstrate their “ability to benefit” by meeting all criteria outlined by the state, including:
- Pursuing a high school diploma or equivalency credential
- Completing a “combination of assessment approaches”
- Enrolling in an eligible career pathway program
- Meeting all federal financial aid eligibility requirements
Individual states are allowed to simplify the ATB requirements with the federal government’s permission. So far, six states offer an approved ATB alternative path:
- Illinois
- Iowa
- Mississippi
- Minnesota
- Washington
- Wisconsin
California will soon be the seventh.
“It’s a duty and a privilege for our state to help students and workers access higher education and pursue fulfilling careers — even without a high school diploma. In California, we’re working to ensure that everyone has the opportunity to succeed and reach their full potential,” California Gov. Gavin Newsom said in a statement.
According to California Community Colleges, existing ATB options are often “inaccessible” to students who need it the most. Many adult learners often lack the financial resources to pay for college courses or have difficulties with the ATB exam after extended time away from school.
While participation in the new ATB process is not mandatory for all 116 California community colleges, those who choose to participate must offer services and resources to ATB students, such as orientation, financial aid assistance, basic needs support, academic tutoring, and counseling.
In fall 2023, there were approximately 36,500 adult students without a high school diploma enrolled at a community college in California, according to data from the California Community Colleges chancellor’s office.
A spokesperson for the chancellor’s office told BestColleges that they had not previously tracked students who had used the ATB exception to apply for financial aid but estimated that “only a small proportion” were able to access federal aid through ATB.
The revised ATB process will roll out to students at 5-10 colleges initially and help the chancellor’s office in formulating statewide policies, guidance, and technical assistance. Statewide implementation is slated to begin in the 2025-26 academic year.
“Our thanks go to Gov. Newsom for partnering on this effort, which represents a significant step toward ensuring equitable access to higher education for all Californians,” California Community Colleges Chancellor Sonya Christian said in a press release.
“Our collective efforts aim to create a streamlined and inclusive pathway for individuals seeking to pursue their academic aspirations, regardless of their background or circumstances.”