The city council is looking to save nearly £600,000 a year by making cuts to school transport.
Education bosses are proposing to scrap free transport to children travelling to faith schools which are further away than their nearest school.
It is also considering axing subsidised transport for post-16 students living further than three miles from their school or college.
About 230 children are expected to be affected by the changes if they are given the go-ahead for next September.
Trevor Pringle, director of children's services at Leicester City Council, said: "Children's services need to save about £11 million by 2014 because of cuts to public funding.
"This is one way of making savings. We will make sure we continue to meet our statutory duties and it's important to remember that no decisions have been taken yet."
An eight-week consultation will be launched in November and the final decision will be made by the council's cabinet.
The council has to provide free school transport for children if the school is the nearest one with a place available and the walking distance is more than three miles for pupils aged eight and over, or two miles for pupils under eight years old.
Parents who choose a school further away than their nearest are usually expected to meet the cost of transport.
Families where children are entitled to free school meals or in receipt of working tax credits receive transport assistance for post-16 pupils. However, this may not be taken into account in the future.
Mr Pringle said: "The council has to decide if it wants to continue helping those aged 16 or over from low-income families or if it can no longer afford to provide any assistance at all.
"These are tough decisions and that's why we're asking for the views of others. Many local authorities have already removed these discretionary services altogether."
Parents applying for school places for next academic year are being told of the proposals.
Councillor Vi Dempster, assistant city mayor for children, young people and schools, said: "We spend about £4.5 million on home-to-school transport.
"Over a fifth of this pays for support that the city council provides over and above its statutory obligations."
"However, our budgets are under increasing pressure.
"We'll continue to meet our statutory duties but need to think very carefully about any discretionary services.
"In the event we decide to reduce our discretionary provision, we hope to be able to continue to offer some assistance to families on low income.
"This will depend on whether we are required to make more cuts in the immediate future."
Final decisions are likely to be made in February.
For questionnaires, visit:
www.leicester.gov.uk
