February 25, 2010
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News: Did Anyone Ask The Students?
Under the new credit card reform act, students will face greater challenges in finding ways to fund a college education. The new law prohibits credit card companies from issuing cards to any individual under the age of 21 unless they are able to convince their parents they are financially responsible. Recent statistics on the average card debt of college seniors is proof in itself that many students have grown careless and irresponsible in managing debt. In view of increasing numbers of credit card defaults, the act appears to be a necessary control mechanism.
You can't help but wonder if lawmakers made their way to the college campuses to hear what students had to say about the new credit card law prior to its enactment; after all, it has a significant impact on their future. In my own arena, when asked what they thought of the new law, students had a lot to say. Some students were particularly concerned about how they would manage to pay for text books. One young lady said that her books run between $400 and $800 each semester. Like most of her classmates, she uses her credit card to cover these expenses. She can't help but wonder how new students who didn't already have a card prior to the new law, will cover these expenses.
A graduate student hoping to graduate this Spring said he has seen a great deal of waste by some of his classmates who raked up hundreds of dollars on their credit cards for unnecessary items and leisure entertainment. Not everyone agrees that the government did the right thing by including restrictions on lending to students. Some feel students must be held accountable for making their financial decisions and if they can risk their lives at 18 for our country's safety, they should be entitled to a card. Still other feel young adults shouldn't be set free to run up credit that will burden them upon graduation. Whether you agree or not, it's a new reality that young students now face an ever greater challenge of finding money for college.