You experience isn't uncommon. I've heard that private schools often front load scholarships an then then either cut them back or cancel them entirely after the 1st or 2nd year
This one was all my own fault. I was supposed to keep a gift GPA, measured at the end of each year not semester thankfully. First year I was 0.1 points below the threshold and was allowed to keep the scholarship for my second year as a probation period to raise my grades, but after the second year my cumulative GPA had dropped instead of raising above the threshold, so it was gone.
For me, the rough part was finding new friends and getting involved in the school. But once the social adjustment was done I didn't notice much difference. The classes were bigger at the state school, but there were more electives and student organizations related to my major too.