I have never heard of a college systematically cutting financial aid 60% for future years. Not say some of the ones in pure crisis have not, but I’ve not heard of such policies.
When policy changes are made, current students are almost always grandfathered in.
Several schools have been asked about stories regarding reducing financial aid Formulas for upperclassmen, and the response has been that this is not true and that other issues were at play for the anecdotal reductions.
One of my friends was quite upset at a significant loss in financial aid when some company payout that was crucial for them to parlay into a business was counted as income. Appeals did not work so they just pulled the kids from school that year. The subsequent year showed a low income even with small business worth and expenses added back into the picture. The kids worked for that startup that first year for no pay and resumed college the next with good financial aid. With planning and a few aggressive moves, they were able to maximize financial aid. Had the fin aid officer given them a little play that pay out year, the school would have saved money. But they stuck to their rules, and then the tiles got stuck to them.