Gov. Arnold Schwarzenegger's draconian plan to phase out the state-funded Cal Grant program for lower-income college students starting this fall has students, schools and financial aid advocates in shock. "This is a very theatrical and distressing threat," says Lauren Asher, acting president of the Institute for College Access & Success. Cal Grants are need-based financial aid awards that go to undergraduate students attending public or private colleges in California who meet certain income and grade-point-average requirements.