Lenders still tempting students towards credit card debt
Despite recent attempts by the federal government to lessen the presence of credit card companies on college campuses, a new report indicates legislation like the Credit Card Accountability, Responsibility and Disclosure Act may not be having much of an effect.
The new study, conducted by Jim Hawkins of the University of Houston Law Center, found 76 percent of students under the age of 21 have received a credit card offer.
In addition, 73 percent of freshman students said they had seen credit card issuers openly marketing to students off campus, The Wall Street Journal reports. Of the survey respondents, 29 percent of those under the age of 21 had received a credit card this year.
Despite restrictions that require students to either prove their financial independence or receive parental approval, the study found many had simply reported their student loans as income on credit card applications, the news source says.
When asked about credit card debt that may incur, 64 percent said they planned to pay off the loans themselves; however, 21 percent expected someone else to pay, suggesting many students may still need a lesson in financial responsibility.