An investment fund that serves about 1,000 colleges and private schools has partially frozen withdrawals amid the nation's credit crunch.
That move is forcing many schools and colleges to develop new plans to pay bills.
Wachovia Bank is the trustee for a $9.3 billion Short Term Fund offered by Commonfund, a Connecticut-based nonprofit that advises colleges and schools on money management. Wachovia announced plans this week to terminate the fund and establish a process to ensure the orderly liquidation and distribution of the fund's assets.
Assumption College in Massachusetts is among those affected by the changes. The school had about $20 million in the fund, and has been able to get back about a third of that. The school's treasurer says the changes have been "a tremendous inconvenience" and "quite a shock."