BERKELEY -- Some 60 percent of the more than 31,000 students registering for fall semester at the University of California, Berkeley, will receive a grant from the university covering the sizable fee increase accessed by the UC Regents in an effort to shore up the school's sagging budget.

In a letter sent Thursday to students and parents, Berkeley Chancellor Robert Berdahl promises outright cash grants for students whose families have an annual income of less than $60,000. Students and families with family income of $60,000 to $90,000 are eligible to receive a loan of up to half the fee increase, Berdahl said.

"I know these changes may be difficult for you, but I want you to know we will do everything possible to ensure that these fee increases do not prevent any student from enrolling this fall," Berdahl said in the letter.

Richard Black, UC Berkeley assistant vice chancellor for admissions and enrollment, said the grants and loans are an effort to help students get through the crunch.

Berkeley students have it a bit tougher than students at other UC campuses because school starts so early.

Regents last week imposed the 25 percent fee increase and also agreed to up it to 30 percent -- depending on what happens to the state budget.

Because classes at Berkeley begin Aug. 19, a month before other UC campuses, all students are being billed for the entire 30 percent increase -- $2,928 for in-state undergraduates, an increase of $827 from fall 2002.

Out-of-state undergraduates must pay $10,033, a $1,861 increase.

He estimated about 60 percent of all UC Berkeley students have fees paid in full or in part by scholarships and other grants. The other 40 percent pay full fees, he said.

In his letter to parents and students, Berdahl said the fee increase is one of a number of steps the university is taking to offset anticipated state budget cuts as the Legislature grapples with a record deficit.

"All non-instructional programs are taking significant cuts, employee layoffs are expected, no across-the-board salary increases are forthcoming, and cost-saving measures are being put in place all across campus," he said.