College and Credit
The Debt Trap
Student Debt Facts
78% of college students had at least one credit card. Nearly 40% of Freshman students sign-up for credit cards and almost 20% get them in high school.
Of the 78% who have credit cards:
- 32% have 4 or more cards
- Average number of cards = 3
- Average credit card debt = $2,748
- 13% have credit debt between $3,000 - $7,000
- 9% have credit card debt greater than $7,000
8.7% of bankruptcies are from people under 25 years of age.
According to the U.S. Department of Education's National Center for Education Statistics, 41% of graduating seniors had credit card debt, with the average balance just over $3,000. Among students who had college loans, the number with credit card debt rose to 48% and the average balance was $3,176.
- 35 out of the nation's top 50 credit card issuers now compete in the college market.
- The average available credit limit is over $6,000 for college students.
- A typical graduate student leaves school with four credit cards and balances of more that $4,778, according to Nellie Mae.
- It would take roughly 12 years for a student to pay off a $1,000 credit card debt with an 18% interest rate if they are making only minimum payments.
See interview with Kevin, a college student,
who found himself $20,000 in Credit Card Debt.
Budgeting 101 - Your Money Guide For Getting Through School Download
this free publication.
| Affording College | |
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The cost for college can be enormous and the best way to save money on college is to plan ahead and get started early. In fact, starting early in many ways can be the key to making college affordable. This parents' guide discusses various ways to save for a college education. |
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- 03/11/2011 - Debit card interchange fee debate takes turn
- 03/10/2011 - Card issuers attempt to collect decade-old credit debt
- 03/09/2011 - Credit cards place in FTC's Top 10 consumer complaints
