Written by:
Shali Zhu

The Gap in States’ Education Budgets

Are you using state grants to help pay for your college education? If so, you may want to start searching for other ways to cover your tuition next year. With many states facing tough budget cuts, a number of them are pulling back on funding for education – and for state grants in particular. The Arizona state legislature announced in March that it has ceased funding for two grant programs, namely the Postsecondary Education Grant and the Private Postsecondary Student Financial Assistance Program, for the 2010-11 school year. Just this past week, the Illinois Student Assistance Commission (ISAC), administrator for the state’s Monetary Award Program grant, stated that it is suspending awards for students who have yet to submit their Free Application for FAFSA for the upcoming academic year. In addition, the California Student Aid Commission may be cutting back on state grant funding for undergraduate students, pending a decision by Governor Arnold Schwarzenegger.

As states struggle with the pervasive symptoms of an economic downturn – less taxes, lower lottery revenue – many have tried to close their budget deficits by cutting, among other things, funding for education programs. According to the Center for Budget and Policy Priorities, a whopping 39 states have imposed cuts on funding for higher education in the past two years, and further cuts are currently being considered. From Michigan to California to Rhode Island, governors across the country are asking for deeper cuts to alleviate the anticipated fiscal difficulties that their states will face in the upcoming year. The Michigan governor is proposing, for instance, that a program that gives college scholarships to 15,000 low-income students be eliminated and that another such program be cut back. Additionally, the governor of Rhode Island has requested that the legislature reduce state funding for higher education by almost 6 percent below the enacted FY 2010 levels.

So what can you do if your state grants have been or are going to be affected by these budget cuts? First, contact your school’s financial aid office, which will be able to provide you with the most recent information on the status of your state grants. You may also want to ask whether the college will make up for the difference if your grant fails to materialize. Moreover, be proactive about looking for other scholarship, grant, or work opportunities to help you close your own education budget gap. Besides searching scholarship websites such as Fastweb.com, you could apply for scholarship programs offered by your community or by large corporations. If a scholarship or grant is not possible, you can also consider looking for a part-time work position on or off campus.

To read more about the various budget cuts that states have proposed, click here. Photo courtesy of Flickr.