Stanford University will no longer accept California's state-funded student aid, allowing it to maintain legacy and donor-based admissions despite a new state law targeting such practices. The university will replace the aid with its own funds, avoiding new disclosure requirements. The law, effective September 1, stops short of penalising non-compliant institutions financially. Stanford assures that students' aid will remain unaffected, and generous internal scholarships will continue for low- and middle-income families.