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Royal Bank of Scotland will set up a 38bn internal "bad bank" to dispose of legacy toxic assets on its balance sheet. Confirmation of the bad bank came as RBS reported a statutory pre-tax loss for the third-quarter of 634m, largely on the back of a charge taken by the lender against a change in the value of its own debt.

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Although fewer American households have debt, the U.S. Census Bureau reports those who do have debt have seen balance increase. Between 2000 and 2011, the percentage of U.S. households with some sort of debt dropped from 74 percent to 69 percent.

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A student who has clawed his way into a school that was a stretch for him shouldnt expect to get merit aid, and may even find his need-based aid capped at a level too low to pay for the school?

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