Two-thirds of students have to borrow to attend colleges, according to FinAid. They leave campus on graduation day 2004 with an average $19,237 in debt, but some owe far more. About one-quarter borrow at least about $25,000, and one in 10 borrow more than $35,000.

Fannie Mae and Freddie Mac were recently taken down for (among other things) taking advantage of the all the market had to offer for returns while meanwhile cashing in on a government backup for its loans. But their cousin Sallie Mae and lots of other private student loan lenders are still playing that game.

While some rates, even on existing student loans, have come down, many have not. My husband consolidated his law school loan shortly after graduating. He's stuck paying 9% for the rest of the loan.

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Even if we don't like it, students and parents have grown accustomed to the fact that the cost of higher education has, for many people, exceeded what can be covered out of pocket.

While federal loans help many people bridge this gap and are all but guaranteed to anyone who demonstrates needs, in order to make up the difference students, including myself, have taken to the private education loan industry in full force. Private education loans aren't guaranteed, but were readily available when I was a student several years back.

Now that the economy is in dire straits, lenders are facing cash shortages, and as a result it it is becoming tougher for students to get private loans, adding to the list of people and businesses facing a credit crunch. CNN tracked down Eric Hahn, a student whose lender, MyRichUncle, stopped writing private loans, leaving many students to scramble for a new lender while still trying to manage their class work.