<p>Twenty years ago, Michigan was doing this … they would award competitive scholarships/tuition grants for the year, then decide halfway through that there wasn’t enough funding to pay for the second half of the year. I remember students scrambling to figure out how the heck they were going to come up with $1200 at the very last minute for their second semester bills. I don’t recall a single successful lawsuit. I imagine states have some type of wording in the scholarship bills they pass that allows them to make changes. I think it stinks, but it’s reality.</p>
<p>BTW, this is also how MI funds education. Our public schools have funding removed halfway through the school year, after budgets are set & money is already spent.</p>