With the downturn slicing philanthropic support for college aid, scholarship providers are cutting back or even canceling their programs, The New York Times reports.

While the recession is driving more families to seek financial aid, less money is available for students, according to Scholarship America, a nonprofit group that administers programs for about 1,200 providers. ACT, a nonprofit group that manages and designs scholarship programs for foundations and corporations, reports a decline of just under 5 percent in available scholarship dollars.

The situation probably means a greater role for federal aid programs as private providers and state governments cut back, said Terry W. Hartle, senior vice president at the American Council on Education.

(Free registration is required to view this article.)