CSU may pull cash grants to half its grad students

The San Francisco Chronicle reports:

California State University is withholding financial aid for about 20,000 needy graduate students - money that pays their tuition - pending a decision that could permanently end the cash grants, The Chronicle has learned.

Graduate students across the 23-campus system began receiving financial aid notices this week and were astonished to see that the State University Grant that takes care of tuition for low-income students was missing. In its place was the offer of a federal loan at 6.8 percent interest.

The higher education bubble story of the day.