Over 10 states in the United States are reducing reward and financial aid programs for students in the midst of budget shortfalls reaching into the millions. At least a dozen states are reducing award sizes, eliminating grants and tightening eligibility guidelines because of a lack of money. At the same time, the number of students seeking aid is rising sharply as more people seek a college education and need help paying the tuition bill because they or their parents lost jobs and savings during the recession. Many of the affected programs are need-based grants that provide money that complements financial aid offered by schools and the federal government. Without that cash, some students may be forced to drop out, transfer to cheaper schools or simply have less money available for rent and groceries. Experts fear others will take on too much debt or spend even more time working as they pursue a degree. State financial aid accounted for 12 percent of the grants awarded to college students in 2007 to 2008, according to the New York-based College Board. Roughly 620,000 more students applied for federal aid in the first quarter compared with last year, a jump of more than 25 percent, according to the U.S. Department of Education.
