"For thousands of Pennsylvania college students, turmoil in the financial aid sector will hit home this fall, with average state grants that could be $500 smaller than last year," The Pittsburgh Post-Gazette reports. "Along with bond market upheaval that has fed a nationwide credit crunch, federal law changes enacted after last year's private loan scandals have eroded the profit potential for private lenders. A number of those firms have stopped making some student loans or have indicated they will tighten lending requirements or raise interest rates."