September 07, 2010
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News: SUNY Accepts Codes To Protect Students
The State University of New York (SUNY) has joined the NY Attorney General Andrew Cuomo in protecting students against predatory marketing strategies of credit card companies. In a statement, Cuomo commended SUNY for its cooperation and commitment to helping to ensure its students maintain a healthy financial life. SUNY has readily agreed to adopt a code created by Cuomo's office which provides guidelines for all of its 64 campuses throughout the state for monitoring credit card companies marketing strategies on campus. The code prohibits SUNY from entering into any contract with a credit card company that rebates the school any percentage of the finance charge which assessed to the student.
The agreement also requires SUNY to choose a credit card that is based according to the specific needs of the school's students when entering into any exclusive contract with a lender. The school must also monitor all card offers marketed on campus. Schools are prohibited from selling or sharing any student's personal information to any credit card company without first acquiring the student's permission. Furthermore, SUNY must provide a financial education course to students. In Cuomo's statement, he said that SUNY Chancellor Nancy L. Zimpher is committed to making “sure that all of our students are prepared with the financial education they need and have the strongest safeguards against financial danger.”
The agreement comes just days after Cuomo announced a statewide investigation into credit-card marketing practices that target college students on campus. Cuomo's office sent out over 300 letters to state colleges and universities asking for copies of any contract with lenders that offer exclusive rights to market cards. The investigation into the lenders' marketing strategies so far have revealed some troubling activities which have added to the college student's growing debt. According to Sallie Mae, the average college student graduates with nearly $4,100 in credit card debt.