Last week, New York Attorney General Andrew Cuomo requested that all colleges across the state reveal any existing agreements with credit card issuers. The Credit Card Accountability, Responsibility and Disclosure Act prevents companies from soliciting students on campuses and offering them freebies for signing up for credit. Now, Cuomo hopes to push the legislation one step further by asking schools to abide by a code of conduct.
The State University of New York, which has 64 campuses, is the first to comply with Cuomo’s request. The code developed by the attorney general’s office is directed toward reducing the amount of advertisements students are exposed to at school. If institutions agree to the demands, they must also provide students with financial literacy programs that educate borrowers on how to handle credit.
The average college student graduates with $4,100 in credit card debt on top of what they already owe in student loans, according to a 2009 Sallie Mae study. While it is important for young consumers to build a payment history early, financial responsibility is the key to maintaining a good credit score.