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Added November 03, 2009
 nesher
Note that starting from February 22, 2010 credit card companies will be restricted from direct mailing of credit card applications to a student. There will be more oversight and transparency for universities which do legally work with and receive large bounties from the top credit card companies. Furthermore, from February 22, 2010 all students under the age of 21 will have to have a credit worthy co-signer OR the student must provide proof of income from their employer of from independent sources.
The Credit CARD Act will prohibit issuers from lending to anyone under the age of 21 unless he or she has a co-signer or has proof of the ability to make payments. Unsolicited card offers will be prohibited to everyone under 21. Credit card companies cannot try to lure students into signing up for a credit card with any tangible item anywhere on or near a college campus or a college-sponsored event. Do you want to know, why the college students are punished by tough limitations? Based on a recent Sallie Mae study, it is easy to see why lawmakers put these restrictions in place. 84% of college students have at least one credit card, up from 76% in 2004. The average amount of debt carried by college cardholders is $3,173, which represents a 46% increase over the 2004 figure of $2,169. The average number of cards per student is 4.6. Only 17% pay off their entire balance each month and 22% make just the minimum payment. Issuers have aggressively marketed cards to college students because they know that many parents will pay off the bill if the student runs up debt. In addition, brand loyalty is determined early in life, so many young cardholders keep their first card for many years.
Category News & Politics
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