"At a time when many students and parents are struggling to pay for college, several cash-starved states are considering reducing funds for grants and scholarships for thousands of low- and middle-income students," USA Today reports. "In California, Gov. Arnold Schwarzenegger's plan to close the state's $24 billion deficit includes sharp cuts in the state's Cal Grants program, which provides up to $9,700 a year for eligible college students. Schwarzenegger has proposed eliminating Cal Grants for new students and reducing grants for some existing students."