Credit Card Banned from Campuses

Credit Card Banned from Campuses

Damian Graham

COM/172

December 20, 2010

Tiffany Griffin-Minor

Credit Card Banned from Campuses

However, for majority college students after their 1st year, they have acquired thousands of dollars of credit card debt. This occurs because of credit card companies offering high interest rates, high balance cards to students on college campuses. This practice must stop. Many companies appeal to youth, the same is true with credit cards companies using marketing techniques aim toward college students.

Therefore, credit card use among college students has jumped during the past five years, according to a 2008 study conducted by Sallie Mae Inc., a leading student loan company. The study of 280 undergraduate college students ages 18 to 24 found that 84% of the respondents had a credit card, compared to 76% in 2004. Half of the respondents had four or more cards. The mean balance of the students’ cards was $3,173, and the median debt grew from $946 in 2004 to $1,645 in 2008 (Woolsey, 2010). The number of freshman arriving on campus with a credit card went from 23% in 2004 to 39% in 2008, according to the study. Half of the respondents said they charged items to their credit card knowing they did not have the money to pay for them (Riley, 2010).

For many college students, borrowing money for school is a necessity. Therefore, most acquire student loans to pay for classes and books. Still, money needed for living expenses. For this reason, a 0% interest rate appears the solution. Most are unaware the rate is only an introductory rate.

As a result, a lack of experience dealing with credit cans double the pressure. Many credit cards come with very high interest rates. Interest refers to the money to pay if buying items and paying off in installments instead of all at once. When paying items off in installments, pay an extra fee every month, based on how much owe and the interest rate. Almost all loans are paid back...