Credit Cards for College Students
April 1, 2008 – 4:15 am by Nick
The U.S. Public Interest Research Group has released a study that reveals the banks aggressive marketing of credit cards for college students. 76% of students polled say they have been marketed, on or near campus, by credit card offers with sign up gifts, which range from t-shirts to iPods.
College represents a fertile battleground for banks to entice future professionals to become lifelong clients. Free gifts are a small price to pay to acquire new customers, who will, in the long run, require mortgages, lines of credit and car loans.
US PIRG notes that students pay for books and tuition with their credits cards, correlates to each undergraduate owing $2,169 on average, in 2004. In 2006, the average graduate owed $8,612.
The alarming debt load shouldered by students has forced many states to enforce laws restricting on campus credit card marketing. The banks circumvent the laws by setting up kiosks near college campuses or directly spamming students or offering a college branded credit card (Ohio State University, Duke University, …), which garner millions for the college.
Regulators should protect students from predatory marketing, which uses students private information. The economies current state could also provide fuel for more restrictions to be applied to secure the future financial well being of students.
