As some parents can attest, a credit card in the hand of a student can result in a lot of debt in very little time.
However, the governor of Connecticut has recently signed a bill that regulates how marketing companies can promote credit cards on college campuses.
“Students are already burdened with education loans by the time they leave college,” Gov. M. Jodi Rell said. “They risk taking on even more financial pressure when they give in to the lure of credit cards made available to them right on campus.”
The new law prohibits credit companies from soliciting students during registration and orientation periods on campus. It also prohibits colleges and universities from selling data about their students to card companies. Credit card companies also will be restricted from offering incentives or gifts during college sporting events.
Parents also aim to benefit from the law. Unless parents sign on to do so, card companies will no longer be able to hold them liable for a student’s debt.
The bill will now require that credit card companies provide education on credit management with their marketing materials.
A recent report from Sallie Mae indicates college seniors graduate with an average of $4,100 in credit card debt, an increase of $1,200 as compared to data from 2004.