Credit Cards & College Students

Credit cards are a fact of life for many college students. They are necessary for many basic transactions, including making hotel and airline reservations and Internet purchases. And most parents want their college-age children to have one in case of an emergency. But some consumer advocates and state legislators are concerned that credit card marketers make credit too easily available to young people who have little or no experience handling their own finances. In contrast, credit card issuers say most students handle credit responsibly. But issuers are also increasing their efforts to educate students about using credit wisely.

This year, state legislators in Arkansas, California, Louisiana, Massachusetts, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia have introduced legislation to regulate solicitation on college campuses and require increased information about credit card usage for college students and their parents.

For additional information, please contact Kelly Anders at kelly.anders@ncsl.org, or check the following resources.

NCSL LegisBrief:

Anders, Kelly. College Students, Credit Cards & Debt (April/May 1999)
Anders, Kelly. College Students, Credit Cards & Debt, Part II (June/July 1999)

Studies:

U.S. Public Interest Research Group. The Campus Credit Card Trap: Results of a PIRG Survey of College Students and Credit Cards (September 1998)
Institute for Higher Education Policy. Credit Risk or Credit Worthy? College Students and Credit Cards (June 1998)

2000 Legislation:

HAWAII

HR 32

KENTUCKY

HB 384

MARYLAND

HB 764

HB 1155

NEW HAMPSHIRE

HB 1364

NEW JERSEY

AB 1136

TENNESSEE

HB 2958

SB 436

SB 2592

VIRGINIA

HB 1451

WASHINGTON

SB 6258

Brochures:

From Citigroup

"Money Matters for Young Adults," call (800) 669-2635.
"Max Moore: College Guide to Personal Money Management," call (800) 833-9666.

From Visa

"Knowledge Pay$" and the "Inform" series, call (888) 847-2606.

Websites:

www.collegevisa.com, by United College Marketing Services.
www.cardweb.com, and click on cardlearn.
www.collegeparents.org, and click on Money Talks, an educational program for parents of high school and college-age students, produced with MasterCard International.
www.americanexpress.com, under Personal, select Other Services. Then Student Services. Managing Your Money heading has tips for budgeting and managing credit.
www.creditalk.com, a website for young people from MasterCard International and Debt Counselors of America.
www.visa.com, and select the Rankit College site, for information on finances and careers from Visa.

Debt Counseling:

For a nonprofit counseling service in your area, call the National Foundation for Consumer Credit: 1-800-388-2227.

Visitor counts for this page.