CA AB789

Requires qualifying institutions participating in Cal Grant Program to develop and implement "satisfactory academic progress" (SAP) policies consistent with federal standards by start of 2024–25 academic year, removing the Student Aid Commission's authority to adopt separate regulations.

Mandates institutions set grade point average and pace of completion standards at federal minimum levels and provide clear SAP information to students during orientation, on websites, financial aid letters, and course syllabi.

Requires institutions to notify students after every term if they fail to meet SAP standards and evaluate student progress using cumulative measures rather than individual term performance.

Establishes comprehensive financial aid appeals process allowing unlimited appeals throughout enrollment, with broad special circumstances considerations including illness, homelessness, childcare loss, employment changes, crime victimization, and natural disasters.

Requires institutions to complete appeal reviews within 45 days, provide written notice of appeals process, offer second review by different reviewer if first appeal is denied, and waive documentation requirements when students cannot reasonably obtain third-party verification.