Financial Pressures Cause Scramble for College Cash.

Byline: Kellie Patrick

Oct. 11--The treasure hunt gets frantic in coming weeks, as college-bound seniors and their parents hustle to find the funds to cover rising tuitions.

Many will find themselves dependent on money that has to be paid back.

This year's state budget crises tightened the financial squeeze because it meant less money for public colleges and universities across the country, including those in Pennsylvania and New Jersey.

Tuition has been rising faster than inflation since the 1980s, while family income has stagnated for all but the wealthy, said Skidmore College economist and College Board researcher Sandy Baum.

During the 1992-93 school year, grants and scholarships made up more than half of the financial aid students received. Loans now account for 54 percent, Baum said, down from a peak of 60 percent in 1997-98.

But an increasing amount of loan money is coming from private sources, Baum said. Compared with government loans, these have higher interest rates, are more likely to require repayment to start before graduation, and are harder to get, she said.

She…