President Bush this month signed an emergency law that will make it easier for students and parents to borrow more this fall.  Congress raised by $2,000 a year the maximum students can borrow through the federal Stafford program, which charges no more than 6.8 percent (with an additional 2 percentage points in fees).  And it fave a break to parents, too, by allowing those struggling with mortgage bills to still get a PLUS loan and allowing all new PLUS borrowers to defer repayment until the child leaves school.

The changes to the federal loans will very likely succeed in steering many students and parents away from expensive private loans, says Rick Vonk, who heads education lending for Key Bank.  But hose who need more than federal loans still may have trouble.  The credit crunch has caused many lenders to suspend their student loan programs altogether.  — Kim Clark

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