Credit card companies target college students before laws take affect
Wednesday, September 30, 2009 10:11 PM
Many recent college graduates are saddled with credit card debt and are forced into consumer credit counseling to bring down what they owe, and while new legislation is aimed at protecting college students from credit card companies, these firms are actively targeting those customers before the laws take effect.According to ABC News, card companies are attempting to sign up college students for cards before laws which will limit how businesses target these students go into effect early next year.
In February, the second portion of the Credit Card Act will prohibit those under the age of 21 from getting a credit card unless a parent or guardian co-signs. And while many believe this will help protect young adults, others think it's over-kill.
Olivia Worley, a 20-year-old early childhood education major at Northern Arizona University in Flagstaff, told the news provider that having a credit card is necessary.
"You have to have credit established to buy a car, buy a house and even to set up your bills," she said. "Otherwise, your monthly payments are more expensive. If we can be 'legal' adults at 18 and start our own lives, then we need that credit because a lot of young people don't have a lot of money to shell out of pocket."
Still, many recent grads start out with a large amount of debt before starting their career. A study from the College Board found that for the 2007-2008 school year, graduates at public institutions had a median debt level of $17,700 while those at private colleges had a median level of $22,375.
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