College students and grads alike know the planned and unexpected expenses of college. They know all too well how fast their credit card balance can climb as well. The stress of carrying this debt is a great concern to the students, as well as parents concerned for their child’s credit score.
Credit card companies understand the newly independent students are inexperienced and ready to sign up. According to a survey by student lender Sallie Mae, 84% of college students have at least one credit card, and the average undergraduate held a running debt of $3,173.
Thankfully President Obama signed a credit card reform into legislation, banning credit card issuers from:
“Setting up on or near campuses and giving away T shirts, i Pods, beach blankets and water bottles to encourage students under age 21 to sign up for plastic” – ‘New Law Should Help College Students’ by Steve Rosen
In Obama’s newly passed legislation has made if more difficult for those under age 21 to apply for a credit card. Applicants under age 21 will need either a co-signer on the card or provide proof that they are able to make monthly payments.
Although the new legislation places no restrictions on debt limits, the new preventative measures will help slow student’s uncontrollable debt.