The New Student Credit Card Craze
As if tuition collected from students does not bring more than enough money into our colleges and universities, now credit card companies are striking deals with the schools that generate millions.
The new student at university, and their parents, has no idea about these deals. They are bombarded by marketing teams at registration, orientation, visits, and between classes. They are offered free t-shirts, calling cards, pizzas, coffee mugs, whatever will get them to sign on the dotted lines. They are making deals with the devil, though, that will cost them dearly.
The deals that are made between schools and credit card companies are damaging to all students. The new student credit card craze has freshmen getting signed up for $10,000 credit lines. These students may not make that much in an entire year of working if they are taking full time schedules. The craze has turned the personal information of incoming freshmen into a hot commodity worth more than the degrees the students will eventually earn.
Students are getting mailings, marketing personnel stopping them in commons areas and cafeterias. Free pizzas are offered at football games, free t-shirts offered for basketball games, and calling cards are waved in front of these home-sick young men and women like they are the pot of gold at the end of the rainbow. The student figures, what difference does it make if I sign up for a card? If they are dumb enough to give me the credit, I must deserve those things I will buy with it.
Then the students are hit with increasing interest rates that multiply that credit card debt up to the sky. The student is left wondering how it happened. They are given weapons to destroy their credit, and then left to flounder in their personal life when the debt becomes too much to handle.
Alumni and staff of universities are also at risk, since their information is being sold as well. Yet many of these people have come to understand the balance needed between income and debt. They exist in the generation that does not need instant gratification, therefore they can see through these offers, and are less likely to be taken advantage of than the new students.
The most obvious answer to this problem is education. It is unfortunately not going to come from the educational institution. They stand to profit immensely from the student’s lack of understanding. Therefore they have no intention of helping students learn financial responsibility. It will be up to the parents and families of the students to teach the process of checks and balances in finances.
Student credit cards.com @ March 26, 2008