NEW HAVEN, Conn. -- (AP) -- An investment fund that serves about 1,000 colleges and private schools, including 16 in Florida, partially froze withdrawals this week amid the credit crunch, forcing colleges to develop new plans to pay bills.

Wachovia Bank, trustee for the $9.3 billion Short Term Fund offered by Commonfund, said Monday it was terminating the fund and establishing a process to ensure the orderly liquidation and distribution of the fund's assets. Wachovia initially told investors Monday that they could only withdraw 10 percent of their money, but that figure rose to 34 percent Wednesday and 37 percent Thursday.

Commonfund, a Wilton, Conn.-based nonprofit, advises colleges and schools on money management. Keith Luke, its managing director, said 16 institutions in Florida are invested in the short-term fund, but declined to identify them, citing confidentiality.

Spokesmen for Barry University, Florida International University and the University of Miami said the universities are not invested in the fund.

Partially freezing the fund prevents a run on money and protects investors, said Laura Fay, Wachovia spokeswoman.

''It was not something we took lightly,'' Fay said.

According to Matthew Hamill, an executive with the National Association of College and University Business Officers, the issue should not affect students.

Commonfund said recently volatile markets have hurt the 15 percent to 20 percent of the Short Term Fund's portfolio held in mortgage- and asset-backed securities.

Fay said Wachovia's decision was not affected by the $2.1 billion deal offer from Citigroup for Wachovia's banking operations.

Miami Herald business writer Martha Brannigan contributed to this report.

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