California Code, Education Code - EDC § 89723

The trustees are vested with all necessary power to perform acts, receive and expend funds, and cooperate with state and federal agencies as provided in Section 12400 for the purpose of receiving and spending the funds provided by the act of Congress entitled “An act to strengthen the national defense and to encourage and assist in the expansion and improvement of educational programs to meet critical national needs;  and for other purposes” (National Defense Education Act of 1958),  1 approved September 2, 1958, and the act of Congress entitled “An act to amend the Public Health Service Act to increase the opportunities for training professional nursing personnel, and for other purposes” (Nurse Training Act of 1964),  2 approved September 4, 1964.

The trustees may provide for the establishment and maintenance of student loan funds pursuant to those acts of Congress.  Money allocated for the purpose of establishing a student loan fund at a campus of the California State University may be withdrawn from the State Treasury and deposited to the credit of that institution in a trust account in accordance with the provisions of Sections 16305 to 16305.7, inclusive, of the Government Code for the purpose of making loans to students in accordance with the federal acts.