Archive for the Personal finance Category

October 2, 2008

The Financial Crisis and Your Investments

AAFR just published a good piece on retirement investing during the financial crisis.

Sound advice for all investing, not just for retirement: don’t panic, don’t make rash decisions, but do become more cautious with your investments.

August 12, 2008

Middle-Income Families Caught in Student Loan Crunch

Student loans have traditionally been middle income kids’ ticket to higher education.

With incomes too high to qualify for “means-based” scholarships and too low to simply pay skyrocketing tuition and other costs out of their own pockets, students in middle-incomes families could at least borrow their way through school. Yes, they were saddled with a burdensome debt load during the first years of their careers. But the increased job and income opportunities available to those with college degrees generally made the investment in an education—even if it was financed with borrowed money and had to be paid back plus interest—worth while.

Unfortunately, student loans are becoming much more difficult to obtain.

The primary culprit is the subprime credit crunch that has rippled through virtually all loan markets. According to Kevin Walker, CEO of, the number of companies offering student loans on his site has dropped by more than two thirds, from about 77 at this time last year to 22 now.

One can only hope that once the mess is sorted out, lenders will tiptoe back into the student loan market. Until then, one of the major ways in which middle class kids can hope to live as well as their parents did will be closed off to all too many.

December 4, 2007

Kouric: middle class “swindled” during subprime boom era

Despite the conventional image of the subprime borrower as a low-income person with a bad credit record, the majority of such borrowers were actually middle-class families with good credit. They're now bearing the brunt of the subprime crisis, and may even end up bailing out the very lenders who took advantage of them.
[read more]

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