SALEM (AP) — A state program to help more students pay for college has been hit hard by the recession and its own popularity.

The state, which has already stopped awarding new college grants, announced Thursday that it will reduce awards for the almost 40,000 students who received them in the fall. Full-time students will see their grants cut by $80; part-time student face a $40 reduction.

“It’s one of the fallouts of the recession, and it will cause pain,” said Wim Wiewel, president of Portland State University, where more than 500 eligible students were denied state grants for the winter term.

Oregon tried to make college more affordable to a broader range of students by doubling the money for college grants this school year to $72 million.

The state also began a publicity campaign to promote it, which led to a sharp rise in applicants. The state expected to award 34,500 grants, but it turned out be 4,000 more.

“We know we don’t have enough funds for the rest of the year,” said Dennis Johnson, who heads the state agency that distributes the grants. “We can’t make any commitments right now, but we will continue to maintain a waiting list.”

Gov. Ted Kulongoski has proposed increasing the money for college grants during the next two years. But that’s a shaky bet given the predictions of recession-caused shortfalls in the state budget.

Christopher Proudfoot, 25, who commutes from Salem to PSU, said he depends on a state grant of $1,600 per term to help pay for tuition and books. The sophomore said he can handle the $80 cut, but it’s still significant when a single textbook often costs that much or more.

“It’s just really bad if they are going to promise it and not be able to provide it,” he said. “That’s setting a lot of students up for failure.”