[Insert 'Gloomy Economic Crisis' Blog Title Here]
Plain and simple, it’s not a good time for anyone in the U.S. economy. And, according to Campbell Brown of CNN, the times are “terrifying.”
Unlike Wall Street executives or the giants of the auto industry, Brown’s show yesterday focused on a group of people we can actually relate to: students.
Brown talked about the unavailability of student loans–calling it “the topic du jour in dorm rooms right now as students pack up for the Thanksgiving holiday.” She has a point . . . as banks like Wachovia, Citibank and Keybank have dropped out of providing student loans altogether. And, unfortunately, reports show students are just continuing to spend, spend, spend.
That’s bad news for us in New York, as the State University of New York (SUNY) just approved a $620 tuition hike. That has caused a bit of an uproar around the state, with several protests already in the works.
There was some good news today, as the Fed’s proposed loan buying will be directed toward student loans:
“Student loan guarantees: $9 billion so far in government purchases of student loans from private lenders. Higher borrowing costs made student loans unprofitable for a number of lenders, many of whom stopped issuing the loans.”
Still, as Campbell Brown’s piece below makes clear, there are many, many students out there facing a really depressing fate.