The credit crunch will make it harder for many families to pay for college this fall, particularly if their children plan to attend high-cost private or out-of-state schools.

Federal student loans remain available, but the caps on how much students can borrow have lagged far behind college costs. Freshmen, for instance, can’t borrow more than $3,500 in federal loans. And other sources of funding are drying up:

It’s getting harder to qualify for private loans. In a recent survey, 43% of private colleges said one or more lenders on their “preferred lender” list have stopped offering private student loans. Lenders that are still offering private loans have tightened their lending standards. To get a private loan, most students will need a co-signer with excellent credit.

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