Eligibility criteria for institutional participation in the Cal Grant awards program was assessed by the California Postsecondary Education Commission in cooperation with the Student Aid Commission. Attention was directed to alternatives to these criteria that would permit the use of these awards by both undergraduates enrolled in nonaccredited, state-approved postsecondary institutions, and by students enrolled in law schools accredited by the California Committee of Bar Examiners. The potential costs and other demands that could accrue to the Cal Grant awards program as a result of using alternative eligibility criteria were also evaluated. Five alternative eligibility criteria were considered in the context of maintaining the state's policy of utilizing state funds to supplement federal student financial aid. In addition to distinguishing the three parts of the Cal Grant program, information is provided on four classifications of institutional recognition (accreditation, approval, authorization, and authorization for Schools of Theology). Seventy nonaccredited institutions that have been approved as of January 1986 are listed, along with 34 law accredited law schools. The text of Senate Bill 362 is appended, along with the questionnaire used to study eligibility criteria. (SW)