There are so many stories right now filled with doom and gloom for those seeking loans for college. In fact, Clark believes there's a gross overreaction to the situation and wants to set the record straight.

Here are the facts. First, the private lending market for college is frozen. Second, many colleges are finding themselves pinched because their endowments have not done well in the stock market. Third, state universities depend on tax dollars for at least half of their costs and that money is shrinking.

So what's the good news?

Well, Clark believes the student loan market freeze may reverse the runaway tuition hikes that had become so common. Borrowing for college became way too easy and it created deep debt for too many people. The loans were based on a false economics and made it possible for colleges to increase tuition at 3 times the rate of inflation. There was no marketplace resistance; people just borrowed more money as tuitions rose.

Meanwhile, the federal government has moved in to fill the vacuum of the private loan market. According to FinAid.org, the feds now provide $4 out of every $10 -- and that's likely to rise.

However, some changes may be in order on your part. Clark advises people to look at doing a few years at inexpensive commuter colleges before transferring to pricey 4-year schools.

For example, California is now routing freshman and sophomores into their network of junior colleges -- where the cost for core curriculum is much lower than in their state university system. Only after you complete 2 years at a junior college can you enter a state university.