September 24, 2009
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News: MA Project Credit Smart Supports Students
Massachusetts is taking a stand against credit card debt in support of the state's college students. Over the last few decades, lenders have been preying on students as the nation has watched the average student credit card debt climb to over $5,000 with nearly 20% carrying over $7,000. Massachusetts estimates that the state's students credit card debt in the Boston area alone is over half a billion dollars. According to Susan Wornick of Boston's News Center 5, the state is taking a proactive stance on the subject through the development of a new educational program. The new program tagged Project Credit Smarts, focuses on educating students in the management of debt.
State officials announced Project Credit Smart during a recent gathering at Roxbury Community College. The program is the product of a strategic partnership between the state and nine area colleges and organizations. According to Barbara Anthony, Undersecretary of the Office of Consumer Affairs and Business Regulation, the state want to "educate Massachusetts' students about credit card use, including its dangers and its pitfalls." With completion of Project Credit Smarts, students will be able to demonstrate how to manage spending and paying bills; determine which credit card offers they should accept and which to turn away from; and maintain a healthy credit history and good credit score.
Credit card reform legislation that was signed into law by President Obama in May will prohibit most of the aggressive marketing strategies by lenders on campuses across the nation; however, the provisions pertaining to student lending will not become effective until February 2010. The law will also prohibit lenders from issuing cards to any individual who can show the ability to repay the debt or does not have a parent or other adult co-sign. Meanwhile, lenders have several months to hook as many students as possible into the web of deceit and a future burdened with debt.