Free Republic

SACRAMENTO — Gov. Arnold Schwarzenegger plans to propose a 10% fee increase for Californians attending college at the University of California and California State University and a fee hike of up to 40% for graduate students at the universities, sources familiar with the governor's budget said Wednesday. At the same time, the budget is expected to contain reductions in college financial aid for students from moderate-income families. Diana Fuentes-Michel, executive director of the California Student Aid Commission, said she expects the governor's proposal to tighten qualifications for Cal Grants, the state's main financial aid program.