I think there are two issues you're talking about.
1. College loans availability. There are different kids of college loans, I think the ones you're speaking that is having issues are the ones that aren't of the fed guarantee type.
2. Issue with CA state funding and cutback at state schools. This was to be expected if you look at the state's budget. I'd expect less enrollment, increased tuitions and possibly reduction of non-essential labor at the universities in the future.
