The New York Times reported yesterday that the troubled Wachovia bank has restricted colleges’ and universities’ access to a $9.3 billion fund in which more than a thousand American higher education insitutions have money invested.

On Monday, Wachovia announced that it has cash on hand to cover just 26% of investments in the fund, and that it would be capping withdrawals from the fund at 10% of any institution’s stake.

For some small colleges the fund represents a major portion of their short-term investments. The University of Vermont, for instance, told the Times that half of its $79 million in liquid operating funds was held by Wachovia.

Monday’s action raised concerns about the safety of other investment funds serving colleges and universities in a general climate of financial uncertainty. In an unrelated move, Boston University on Tuesday announced that it was suspending all hiring except for public safety officers effective immediately, and that it was halting all new construction on campus for the indefinite future.