With scores of lenders unable to come up with money to provide student loans, the Department of Education is preparing to exercise broad new powers in the coming weeks that could fundamentally recast how millions of students pay for college.

WASHINGTON - Because of a computer error at Sallie Mae, thousands of people with student loans from the company had their credit scores decimated.

There's been quite a bit of news lately about how, as the credit crisis continues, it may be more difficult for some families to get student loans.

NEW YORK (Reuters) - Shares of First Marblehead Corp (FMD.N), one of the largest securitizers of student loans, sank 37 percent on Tuesday after a company that guarantees bonds it helps to sell filed for bankruptcy protection.

NEW YORK (Reuters) - Shares of First Marblehead Corp, one of the largest securitizers of student loans, sank to a record low on Tuesday after a company that guarantees bonds it helps to sell filed for bankruptcy protection.

As if paying for college isn't stressful enough, now students and parents face a new worry. Some private lenders are already pulling back on student loans, raising fears that rough weather is ahead during the peak lending season in July and August.

COMMON TYPES OF STUDENT LOANS Stafford loans: Guaranteed by the government and come in subsidized and unsubsidized varieties.

COMMON TYPES OF STUDENT LOANS Stafford loans: Guaranteed by the government and come in subsidized and unsubsidized varieties.

As if paying for college isn't stressful enough, now students and parents face a new worry. Some private lenders are already pulling back on student loans, raising fears that rough weather is ahead during the peak lending season in July and August.