No market is immune to the current credit crunch.

At a U.S. Senate hearing today, John Remondi, chief financial officer of SLM Corp, said that the market would notice the shortage of student loans next month as demand increases from new students.

I get a mixed bag of feelings from this. First, I am really happy for future college students who will probably have lower college tuitions as the U.S. becomes less able to subsidize student loans. Since students were able to borrow so much money from government funding, colleges were able to exploit this cash influx by charging higher tuitions. Now with all the credit markets strapped for cash, there is no more easy money for student lenders and hopefully we will see more affordable tuitions very soon.

But I also have great pity for the current students who probably won’t benefit from lowered tuitions yet and/or cannot go to the school of their choice because money is no longer abundant.

With more and more students unable to secure school loans, you may find it a bit easier to get into Harvard in the near future.