The college credit-card crunch

Wednesday, July 23, 2008

As credit card companies continue to descend upon college campuses, Congress is threatening to make it more difficult for students to qualify for credit. But is Congress protecting students from debt or is it infringing on students’ rights?
Guests: Klassie Alcine, a student at University of Missouri in Kansas City currently dealing with credit card debt, and Christine Lindstrom, director of Higher Education Project at Public Interest Research Group

Comments [1]

Kay Thayer

I went back to school because after losing my job and being told I was over-qualified for most entry-level office positions (since I had 5 years of office experience) but not qualified enough for mid-level ones (since I never had accounting responsibilities).

I thought I could at least make $30,000 per year with my new degree. Once I started looking for work reality set in. I could barely get jobs paying $24,000 (just shy of how much I was making when I left the workforce). Trying to pay off $35,000 in college loans, about $5,000 in credit card debts, with 2 young children in daycare, and having a 40-50 mile commute to work has been challenging.

As to credit card debt on campus, many college students are in the same boat. They think they will get really good paying jobs once they graduate so all they need to do is get to that point. In reality, that is not going to always be the case.

Many students being recruited to get credit cards are encouraged to include their college loans & grants as income. I know of friends who were not working but still were able to get credit cards probably because there was no income verification.

There are errors being made on both sides of the fence. Students need to be more realistic about their future income and learn more about how credit cards fit in personal finances. But Credit Card Companies also need to quit going for the easy dollar by enticing college students who they know are more apt to abuse these cards.

Jul. 23 2008 12:51 PM

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