Thursday, April 17, 2008

What about all us non econ majors?

I'm always pleasantly surprised when I glance through a Hatchet article and think "Wow, I should actually read this article."

As a senior trying to figure out how I'm going to pay for grad school in the next couple of years, the article entitled "GW Preps for Loan Scare" easily caught my eye.

I'm not sure that the two weeks of finance that we covered in my econ classes were enough to understand the article:
The subprime mortgage crisis, which tore through the financial markets over the last year, has reached student loans. Officials at GW are wary, but confident that students here will be able to find loans to cover the University's sky-high tuition...

Student loans issued by brokers have traditionally been resold to investors on bond markets, since brokers rarely have the funds to cover the loan themselves. But the collapse of the market for home mortgages last year made such debt a pariah for investors, and student loans are the latest victim.

By the end of the article, Bob Dylan lyrics popped into my head: "Something is happening here, but you dont know what it is, do you, Mr. Jones?"

I consider myself relatively ready for the "real" world, but if i can't follow a Hatchet article, perhaps I'm not as ready as I think.

And just thinking about the current price of GW that many students have to finance through loans, I'm sure I'm not the only one who was alarmed.

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