Thousands of incoming college students whose families earn less than $100,000 a year would be eligible for up to $7,600 in new financial aid at community colleges and State System universities under a sweeping plan to be proposed by Gov. Ed Rendell.

The governor said his plan, which he will unveil this week, aims to ensure that students will be able to afford to go to college this fall despite tough economic times.

The governor is seeking support on two fronts:

• An Emergency Tuition Relief Act that would apply to families earning less than $100,000 a year and provide up to about $7,600 to pay for tuition, fees, books and room and board at the 14 State System of Higher Education and the 14 community colleges in the state. This would be only for students starting this fall, not continuing students.

• An increase of $45 million for grants to incoming and continuing students at public and private colleges and universities in the state from the Pennsylvania Higher Education Assistance Agency. This is on top of more than $400 million the state already allocates for such student aid.

"Among all of the serious problems families are facing, perhaps the most serious is the decision about whether they can continue to afford to send their kids to college," said Mr. Rendell. "That's particularly true if someone has been laid off or [has gotten] a poor-paying job. Those are gut-wrenching decisions."

Such decisions hurt more than students and their families, he said.

"It also hurts the Commonwealth because we're going to have a significant brain drain ... down the road," he said.

The tuition relief for incoming students is expected to cost less than $200 million in the coming year but would grow to about $700 million as it is phased in over four years.

The governor declined to say where the money would come from for tuition relief.

This fall, 70,000 students -- about a quarter of those enrolled in the State System and about half of community college students -- are expected to receive the relief if it passes. For some, the effect would be dramatic.

For a family of four earning $30,000 a year, state university costs -- after Pell and PHEAA grants -- now run about $7,700 a year but would drop to $1,000 a year with tuition relief.

For a family of four earning $75,000 a year and qualifying for a PHEAA grant, the university cost would drop from $14,300 a year to $9,250 with tuition relief.

A family of four earning $95,000 would find state university expenses falling by $2,700 a year.

When the program is fully phased in over four years, state officials estimate that 10,000 students who would not otherwise have gone on to college or would have attended out-of-state schools will have been helped.

"The No. 1 thing we're hearing not only here but around the country is that the biggest casualty for many families may be college simply because tuition is so expensive," Mr. Rendell said.

In Western Pennsylvania, the list of state schools eligible for tuition relief includes California, Clarion, Edinboro, Indiana and Slippery Rock.

The community college list includes schools in Allegheny, Beaver, Butler and Westmoreland counties.

Tuition relief would not apply to students at state-related schools -- the University of Pittsburgh and Penn State, Temple and Lincoln universities -- because the state doesn't have as much control or influence over their tuition increases, a senior administration official said.

Additional PHEAA grants would apply to those universities and other in-state schools.

While there is no grade point requirement for tuition relief, students would have to apply and be accepted at the college or university they want to attend.

In the tuition relief plan, families must fill out the Federal Application for Student Aid -- a form known as FAFSA -- that already is widely required for financial aid.

Whether a person has an income below $100,000 will be based on the FAFSA formula. FAFSA also is used to determine the amount of Pell and PHEAA grants as well as to calculate an Estimated Family Contribution, known as EFC, based on need.

Even if the family contribution is estimated at zero, the state still will require a contribution of $1,000 so that all are making an investment.

The total of the family contribution, Pell and PHEAA grants and any other grants would be subtracted from the college costs to determine the size of the tuition relief, which could run up to $7,600 a year. Federal work study participation would not affect the size of tuition relief.

For community colleges, costs include tuition, $1,000 for books and fees. For state universities, those costs plus room and board would be counted.

If there were still a gap after tuition relief, student loans, including federal loan programs, could be used.

Tuition at all 14 State System schools is $5,358 this year; fees and room and board costs vary by school.

Tuition varies at community colleges. Community College of Allegheny County this year charges $2,046 for a full-time student carrying 24 credits.