According to the Associate Press, nearly half of all college report students having to take time off or attend only part time. Most schools reported between 11 and 50 students this semester who couldn¿t attend. [Read More]

In addition to the post below, the Associated Press now reports that some colleges have had to cut other spending just to meet increased financial aid demand. Students at a college outside Chicago are now asking for more aid because they too are short on funds:

"They're coming in and saying, 'I need a little more help,'" said Jerry Cebrzynski, financial aid director at Lake Forest College outside Chicago, which cut several class offerings and froze last year's operating budget in part to make more aid available. "I think we're seeing just the tip of iceberg."

The article goes on to say that the 76 schools with 1 billion+  endowments will weather this storm fine. For the countless other schools, major cuts may be on the way, especially towards new consturction. Right now, schools are making the right choice of making financial aid the top priority. Besides, what's a college if your students can't afford to attend?

The US News and World Report...reports...that FAFSA applications rose 17 percent from last year to a total of 9 million:

"Financial aid officers and researchers said that some of the aid application increase is due to the constant increases in college prices. Every year that tuition rises faster than incomes, more students qualify for financial aid. In addition, recent economic troubles such as layoffs and declines in the value of homes and stock investments mean that some students who were able to afford college last year need financial help this fall. The credit crunch also very likely contributed to the spike. Many students and parents may be filing the FAFSA to get access to federally backed student loans, because private lenders, which don't require the form, have dramatically reduced their lending."

Other than an increase in tuition, experts believe that more students are wising up when it comes to their college costs.  Student loan problems plus exponental tuition increases are big news items and have steered students to apply for aid they qualify for, but didn't consider in the past. To read up on your financial aid options checkout FastWeb or FinAid.org to become smart students on financial aid.