California Gov. Arnold Schwarzenegger has proposed a 10 percent cut to Cal Grants, the state's $880 million college financial aid program, the Los Angeles Times reports. The biggest shift would involve not covering a rise in tuition with grants—just as the University of California and California State University systems are considering 10 percent jumps in tuition.
Judy Heiman, an analyst with the state legislative analyst's office, said "decoupling" the fees and the grant funding might not cut too deeply the first year, but could quickly add up if fees continue to jump as they have in the last decade. "It will be 4-5% this year, then maybe 10% or even 20-30%," she said. "It could get to the point even students with full grants can't afford to pay fees."
The proposed changes would also eliminate some aid for returning adult students and grant money for students attending private colleges.