SAN FRANCISCO (CBS/AP) — A state report examining Cal Grant’s new eligibility standards said the tighter rules have disqualified 80 percent of California’s for-profit colleges from the financial aid program.

The state Legislative Analyst’s Office released the 20-page report Monday to update lawmakers on how the rules adopted last year have affected higher education. The new standards were designed to steer students toward a better quality education by avoiding institutions with high loan default rates and low graduation rates.

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The report says the tougher standards have worked largely as intended.

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Among higher education institutions with large numbers of students receiving federal aid, 35 percent have been barred from receiving Cal Grant students. No state-run colleges were affected.

The report makes three recommendations to improve the system, including a new assessment for measuring default rates.

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