actually ALL student lending is tightening up and many mechanisms for loans will likely vanish. This is actually GOOD for students because as history has taught us, schools will rachet up tuition and fees when they know students can borrow it. The danger is schools will begin a private loan system of their own to screw students charging crazy interest rates with lots of penalities(they already have something on a small scale, eg-my med school lent me around 8K at 8.15%, insanely high given Sallie Mae was 3.15%).