Student Lenders Scale Back, but Not All Agree They Face Crisis

With each passing day, the student-loan industry issues new warnings about the twin dangers of federal subsidy cuts and turmoil in the credit markets stemming from the crisis in subprime mortgage lending.

"It feels to me we are headed to a real crisis in the student-loan world," Richard Shipman, director of financial aid at Michigan State University, told The Detroit News this week after the state's student-loan authority canceled a program for offering private student

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