Lenders Worry That Colleges Don't Yet See All the Dangers

The nation’s student-loan companies remain deeply worried about their financial health. They may now be worrying just as much, however, about the willingness of colleges to recognize their own financial peril...

“I think they’re in trouble,” said Daniel M. Meyers, president and chief executive of the First Marblehead Corporation, a leader in the marketplace for private student loans, of the institutions he visited during a recent tour of college campuses.

“I wish to say that I saw schools' being way more proactive and way more concerned about their current revenue picture,” Mr. Meyers said. “But I haven’t seen too much of it.”