With states finalizing their budgets, state college funding is taking a major hit – forcing many schools to increase tuition and cut financial aid as a result. The problem: Families won’t hear about these cost changes until the end of summer – or even later.

Declining revenues from property, sales and income taxes, along with the end of funding from the 2009 stimulus, are receiving the blame for the states’ budget woes.

At least 19 states have cut funding for public schools so far. And some states are pulling back on grants only recently awarded to students. This includes:

• Texas, which announced 6-10% tuition hikes for some schools
• California, where tuition will increase by 12% – on top of the previously-announced 8-10% increases
• New Hampshire, which will see 6-10% hikes and will end all state grants
• Georgia, where the merit-based Hope Scholarship will pay only 87% of tuition rates, instead of its usual 100%, and
• Illinois, which will be reducing its grant sizes in January (in an effort to give students more time to plan).

How is your school preparing for budget cuts? Share your strategies in the comments section, and don’t forget to  follow us on Twitter.

Arizona’s board of regents is considering proposals to open a number of college campuses that would offer just a few majors and cost a lot less to attend than the state’s universities.

The proposals for the “no-frills” schools are partly a response to recent sharp tuition increases at state universities.

The idea is to set up satellite locations associated with Arizona State University, the University of Arizona and Northern Arizona University. The new schools would create a new option for students that falls between typical community colleges and large four-year schools.

A big focus of the new schools: Degree programs that teach trades.

The anticipated annual cost of attending one of the new programs would be about equal to the maximum amount students can receive under the federal Pell Grant program.

Do you think the idea of “no-frills” schools will take off? Let us know in the comments section below.

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