The state in which I work has experienced a serious shortage of funding in higher education over the past decade. The old trend was to initiate state appropriations for financial assistance, then readjust that funding at a later date as money ran out. However, the new trend is for budget cuts almost as quickly as the budget is set.
Many states are given funding, but only to be put into reserves for possible revocation at a later date. As a result, financial aid applications increase, tuition increases, but financial aid stays the same or decreases. This is a sad state of affairs that many public institutions are facing.
Our country's economic distress isn't just at the federal level. Already, over one-fourth of U.S. states report decline in state tax spending on higher education, and almost another one-fourth will have an increase of less than 2 percent. The most hardest-hit areas are New England, the Southeast, and the Southwest. These are some of the more imperiled states:
Fiscal 2009 Appropriations 1-Year % Change
Alabama -10.5%
Arkansas -3.0%
Connecticut - 3.2%
Florida -8.8%
South Carolina -17.7%
Texas -4.7%
As you can see, these states are facing a loss of state funding in higher education. This reduction isn't solely made up of financial aid funds, but funding in general. However, my experience tells me that financial aid is usually the first program on the chopping block.
So what does this mean? If you rely on your state's financial aid program to help pay for college, you should probably look for other resources to supplement your education.