For-Profit Schools Facing Aid Crunch

A changing lending environment is hurting for-profit colleges but may help students by compelling them to use often-overlooked federal loans

Don't let those 30-second commercial spots offering a better life in 18 months fool you. The for-profit colleges making those promises may be easy to get into, but footing the bill for many of them just got a whole lot harder. In January, Sallie Mae (SLM), the largest student lender, pulled out of the subprime market, a development that leaves many prospective students with fewer options to help pay their tuition bills, and the colleges themselves in a financial bind.

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