Leaders of both parties joined Gov. Nathan Deal Tuesday as he signed the new HOPE scholarship bill into law at the state Capitol.

The law will cut scholarships to cover 90 percent of current tuition for all but the highest-scoring students, though that figure doesn't account for the expected double-digit tuition increases at some public colleges this fall. Students who earn a 3.7 grade-point average and a 1,200 out of 1,600 on the SAT would still get a full scholarship.

The first-term Republican governor made fixing the landmark scholarship a centerpiece of his legislative agenda this session. Deal said he and the legislature were forced to rein in the lottery-funded HOPE program by a slowdown in lottery sales and soaring tuition and enrollment costs.

The bill will save the state about $300 million, the governor announced.

"With today's signing, we have closed a $300 million shortfall in the next year, we have pulled HOPE and Georgia pre-K from the brink of bankruptcy and we have preserved our state's elite status for having the most generous benefit programs in the nation," Deal said. "Georgians are blessed to have legislative leaders who put aside politics to craft a new law of generational importance."

Earlier this month, Deal backed off from shortening the prekindergarten day but proposed cutting the school year to 160 days from 180. He also plans to have class sizes increased by two students each.

Russell Vandiver, president of Lanier Technical College, said the changes will have a big impact on the HOPE grant, which many in the technical college system rely on.

Vandiver said there are 4,440 students at Lanier Tech, many of whom may not be able to afford to continue their programs if they are not able to meet new standards for the HOPE grant, which is scheduled to take effect in the fall semester.

"At that point in time our existing students will have to have a check point for a grade point average and that will be 3.0. If they don't have that and they're in the middle of their programs they will not be eligible to continue to receive the HOPE grant," he said. "The HOPE grant never was set up to be a merit-based program. It was set up to be an economic development tool because of the mission of the technical college system."

Many students at Lanier Tech are already facing financial hardship, meaning a decline in enrollment is eminent, Vandiver said.

"Unfortunately, my concern is a lot of these folks probably are out of a job. Our growth has been phenomenal for the past four years. We're somewhere between 35 and 40 percent growth since 2008 at Lanier Tech. A lot of that has to do with the economy," Vandiver said. "They might be unemployed trying to finish a diploma program and unable to finish because of the funding."

But Vandiver commended state officials for making changes to save HOPE funding.

"Personally I think the legislature and the governor did a really good job looking at everything and making decisions. And those weren't easy decisions. They had a number they had to come up with to save the HOPE program," Vandiver said. "It's going to be a challenge, but the technical college is going to work toward making it as good as we can and stay focused on the students."

As changes to the HOPE scholarship program were evolving, staff at North Georgia Technical College were studying the situation, spokeswoman Sandra Maughon said.

"We're being proactive and we have several options we're pursuing actively," she said. "Our first concern is for the students as always."

Maughon said a significant number of students rely on HOPE, and the college is putting plans into action to help fill the gaps.

One area is reducing textbook costs — the HOPE bill does away with coverage for books and student fees.

"(Books) are very expensive and we're looking at alternative ways to help with the price including e-books and rental books," she said.

The college is also pursuing additional funding for scholarships and investigating the possibility of low-interest student loans. Maughon said the college will try to strengthen its work-study program.

"We want to make it more attractive and competitive. The program pays for school and students have work experience when they finish," she said.

Students attending private colleges would see the award cut from $4,000 to $3,600, said Jim Barco, senior vice president for instructional development at Brenau University.

"We appreciate the state of the economy and the priorities the governor and legislatures face," Barco said. "As a private institution we have to live within our means also. When lottery payouts exceed lottery revenues, you change."

Barco added that the HOPE program is still a good deal for college-bound students.

"It's a phenomenal program," he said. "It's helped educate hundreds of thousands who many not have gone to school otherwise."

Calls to public relations officials with Gainesville State College in Oakwood were not returned Tuesday.

At North Georgia College & State University in Dahlonega, about 62 percent of students receive HOPE.

NGCSU spokeswoman Kate Maine said the reaction from school leaders is that they are happy to see HOPE could be salvaged.

"We're glad we're able to continue with the HOPE program," Maine said. "It has helped numerous students attend college and the governor's plan preserves that opportunity for students in the future."

Associated Press contributed to this report.