New Jersey adds new restrictions on student credit cards
As millions of young adults across the country prepare to either return to college or move out on their own for the first time, it’s easy for them to fall victim to the temptation of credit card debt.
According to a report in the Bergen Record, the state of New Jersey now has laws in place that will help to prevent college students from drowning themselves in debt before they’re financially independent. While a provision of the Credit Card Accountability, Responsibility and Disclosure Act prohibits credit card companies from giving cards to anyone under 21 without an adult co-signer or evidence of their ability to pay for their debts, the Garden State takes it a step further.
The report said that the state law, which recently took effect, restricts the ways credit card lenders can market on campuses, and prohibits them from seeking delinquent debt from a student’s parent or guardian unless they co-signed for the card.
These new laws may help to limit the post-college debt students experience. As it is, the average young adult graduates owing thousands to credit card companies.