Increasing Cost Of Tuition Will Help Public/state Universities

[Harry]

http://online.wsj.com/article/SB1231199635...s_whats_news_us

The most important excerpt:

Amid the credit crunch, 39 lenders have stopped making private student loans; others have tightened lending standards. Lenders and analysts estimate that private student lending has fallen as much as 25% this school year, as the market for selling bundles of these loans as securities to investors has dried up.

The decline is likely to prompt more students to pursue less expensive options. "The cloud of this financing issue will push more of them to state public universities and community colleges," said Tim Ranzetta, president of Student Lending Analytics, a research concern in Palo Alto, Calif.

Ben Kittner, of Raleigh, N.C., said the cost and availability of federal loans are major reasons his daughter, Kaylie, a high-school senior, is applying to three state schools and only one private one. "Definitely, it will come into consideration when we know where she is accepted," said Mr. Kittner, a market-research manager for a nonprofit.