With Sacramento State’s tuition on the rise, many more students may be needing financial aid packages to remain in school.

Gov. Gray Davis’ budget proposal cut $326 million from the CSU system. The proposed cuts would raise tuition by $396. The hike may force students who could normally pay for their education to seek financial aid next semester.

Sac State sits in the middle of all California State Universities according to cost, with students living on campus spending roughly $12,390 on tuition, fees, room and board, and personal expenses. Most of the students at Sac State pay for these with financial aid, according to the Financial Aid Office.

Linda Clemons, Director of Financial Aid, said 55 percent of the students need some form of financial aid. These include scholarships, federal grants, and student loans.

Scholarships and federal grants are all ways of receiving free financial aid. Students must have specific qualifications, ranging from academic achievements, to ethnicity or gender, or inability to pay for education, to obtain these funds.

Student loans must be paid back with interest. Loans are given to students who do not qualify for grants but still are unable to pay for their education.

Even though there have been large budget cuts at school, Clemons said the student loans should not be affected.

“These are federal student loans,” Clemons said. “They are determined by the Treasury.”

Since the loan is federal, California does not determine the amount of interest attached to the loan, Clemons said.According to a press release from the Department of Education, loan interest has dropped to its lowest point in decades to 4.06 percent, down from 5.99 percent in 2001.

California also does not determine which students are accepted for financial aid. Prospective students fill out the Free Application for Federal Student Aid. The Higher Education Act may be re-authorized this coming year, which may mean changes in the prerequisites for granting financial aid to students, but the changes should not affect students who are currently receiving aid, said Jane Glickman of the Department of Education.

No student will be left out if they qualify, she said.”If you qualify, you get it,” said Glickman. “Congress will find a way to get you the money you need.”

There are an estimated 500,000 more students getting loans this year then last, and that number is expected to rise again next year, according to the Web site www.ed.gov. The site also said the rate drop will help students afford to pay back their loans, allowing more prospective students to get an education.

“The raise in tuition doesn’t bother me at all,” said Alex Graham, a prospective student who will be needing financial aid if he joins in the fall. “Sac State is still one of the cheapest school in California.”

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