Students loans are in trouble and it is already affecting for-profit education companies. Corinthian Colleges announced on Monday that student loan company Sallie Mae will no longer provide serial subprime private loans for current students. This could prove to be a precusor to problems at public institutions, which are not required to disclose such news publicly. Students may now be forced to find alternatives in the private loan markets from banks at much higher rates. This is bad news for low income students and those who are tight for money.

From Reuters:
For-profit education company Corinthian Colleges Inc said on Monday that student loan company Sallie Mae will no longer provide serial subprime private loans for current students, adding to worries that Corinthian students will have difficulty funding their education. Sallie Mae, the commonly used name for SLM Corp., will continue to fund all current subprime loans on the books but it will not provide new "serial," or subsequent, loans for these students, Corinthian said in a securities filing. Corinthian said it had earlier believed that Sallie Mae would provide serial loans for current students through the completion of their programs.