Cal Grant CC Reserve

I received Cal Grant A 2 years ago but attended community college so it was put on CC Reserve. Now my family income has gone up and I was told that I am not eligible to claim my grant because I have gone above the income bracket. Is this correct? Has anyone had this problem?

Even if you place a Cal Grant on reserve, you still need to re-qualify for the funding based on income for the year you wish to utilize the aid. So yes, you have to meet the income ceilings every year. This would be the same even if you had been collecting the funding for the last two years.

But I could have just taken out the grant by going to a UC the year that I was awarded?

Yes initially for year 1 you could have, since your income/grades qualified you for Cal Grant at that point.