Among the recipients of IOUs was the California Student Aid Commission, which runs the Cal Grant scholarship program.
The commission will forward its IOUs as payment for student fees at community colleges and universities until the state starts issuing cash, officials said.
If the practice continues into August, Glendale Community College may be able to help cover tuition costs for some grant recipients, but not all of them, said Ron Nakasone, interim vice president of administrative services.
More than 200,000 California students receive Cal Grants to help pay for college and, although no details were immediately available on the number of recipients at Glendale Community College, a significant portion of the population would be affected by the issuance of IOUs, Nakasone said.
The college will use its own funds to advance tuition payments for some students receiving Cal Grants, but administrators will not be able to offer additional help to those who also receive federal Pell Grants, he said.
It is unclear what the college will ask of students who need financial assistance, but will temporarily lose Cal Grant support because of IOUs, he said.
“If they don’t get a Cal Grant they could be in jeopardy or not moving forward on their education,” Nakasone said.
But administrators are hoping students won’t have to face that situation, he said.
“As long as they have a budget by the end of July there’s really no impact on us,” he said.
Lawmakers expressed optimism Monday that a budget solution for the state’s gaping revenue shortfall could be reached within the next two weeks because of recent progress in negotiations.