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14,000 students could receive monthly payments of $500 for up to five years under the proposal

By on January 25, 2022 0

A NEW proposal could allow thousands of students to get monthly payments of $500.

This comes from California State Senator Dave Cortese of San Jose, who is offering a guaranteed income pilot program on select California State University campuses.

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Aid would be paid to students whose families are in the lowest-earning 20% ​​in the state

It’s unclear how long the proposal will last, but the Democrat predicted what the plan could cost.

A three-year plan would cost California about $57 million, while a five-year plan would cost about $84 million, according to Mr. Cortese’s preliminary estimates, as reported by Los Angeles Times.

If passed, the program would provide assistance to students whose families are in the bottom 20 percent of the state.

For recurring monthly payments of $500, a few schools are under consideration, including San Francisco State, CSU East Bay, CSU Los Angeles, Fresno State, and San Jose State.

As many as 14,000 students could qualify.

“Students do couch surfing and sleep in their cars. It could be enough money to rent a room, and if you don’t need a room, use it for what you need,” Mr Cortese said.

In fact, nearly 11% of students enrolled at California State University (CSU) reported being homeless in 2018, according to data from the Chancellor’s Office shows.

Not only would it become the last area in the country to experiment with Universal Basic Income (UBI) — but it wouldn’t be the first time California has tried it either.

Recently, Los Angeles launched its UBI program, which provides 3,200 low-income families with payments of $1,000 for one year.

Other California cities, including Santa Clara and Stockton, have also launched UBI programs.

The Stockton program reduced “income volatility” and helped recipients find full-time work and improve their health, according to a preliminary analysis by Mr Cortese.

In total, California Governor Gavin Newson has allocated $35 million to cities and counties interested in offering guaranteed income programs.

For the most part, UBI programs aim to lift low-income Americans out of poverty by providing them with additional assistance.

But Mr. Cortese noted that he would not go ahead with the UBI program if students eligible for financial aid received less from other financial aid programs due to increased income.

Specifically, he wants safeguards put in place to prevent this.

To learn more about how you can get money, find out if you still owe a stimulus check.

See if you can claim more than $22,000 from the IRS this year.

Plus, we explain three situations that could lead to a fourth stimulus check this year.

Stimulus check update: 15 cities and states offering Universal Basic Income payments up to $12,000

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