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Investors were particularly nervous about Bank of America, which had sharply lowered earnings estimates last month, citing bigger loan losses.
Some spouses did not put their names on the applications in order to qualify for a bigger loan, without necessarily realizing that they were putting themselves in jeopardy.
Sorana Vieru, NUS vice president, told BBC Breakfast: "It's a disgraceful change that basically punishes poorer students simply for being poor, so they have to take a bigger loan than those students from privileged backgrounds.
I say, "Why not try this other option too?" Tell them that if they take the loan they must pay it back, but if they do they'll get a bigger loan.
Two years ago, Lilia Garcia and her husband, Jesus, bought their dream house in Linden, Calif., for $535,000 and financed it in part by taking out a bigger loan backed by their previous house in nearby Stockton.
Then I got a bigger loan and built myself a house.' She now rents out a couple of houses, with an income of 6,000 taka a month and is planning with the 70,000 loan that is due to arrive soon to buy a minibus to transport people around the neighbouring villages.
Similar(45)
What is particularly troubling is that, as bad loans balloon, few banks appear to be covering their backs with bigger loan-loss provisions.
More capital meant bigger loans.
Taking on bigger loans seemed affordable when credit was cheap.
Or the student could have taken out bigger loans.
Moreover, banks that sell those loans on the secondary market make more money on bigger loans.
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CEO of Professional Science Editing for Scientists @ prosciediting.com