Students often opt to apply for credit cards in college, but a survey released March 27 said students are suffering the consequences. A survey conducted by the U.S. Public Interest Research Group said more students are using credit cards but are “paying the price through late fees, high balances and delinquencies.” More than 1,500 students, primarily single undergraduates from 40 universities, participated in the survey. The survey found 66 percent of students have had at least one credit card, and 30 percent said they were either a co-signer or their parents pay for the card. About 50 percent of student credit card owners said they used it for day-to-day purchases or books. While 40 percent of students said they used their credit card for weekends and pizza, only 24 percent said they used it to pay tuition. Jill Unis, textiles, apparel and merchandising sophomore, said she has one credit card but only uses it for overdraft protection. Unis said she usually does not have a balance on her card, but if she does, her parents pay it. The survey also found that credit card companies are aggressively marketing to students through a variety of channels. “The credit card industry’s priority is to get their cards into the hands of undergraduate students … [because it] has the potential to be … the one that is used most often,” the survey said. There are five ways credit card companies market to college students – campus tabling, student peer pressure, branding “college” credit cards, purchasing student lists and debit card exclusive deals. Many credit card companies set up tables on college campuses in a similar manner to student organizations. Companies offer reimbursements to student organizations that convince family, friends and neighbors to apply for a credit card. Credit card companies also use free gifts as a way of luring students into getting credit cards. About 76 percent of students said they have stopped at tables and considered applying for a card to get a shirt. Of the people who stopped, 31 percent accepted the gift and applied for a card. The survey said many credit card companies do not encounter difficulties in accessing current students’ information at colleges. “State laws may make student lists public records subject to full disclosure,” the survey said. Patti Beste, senior associate registrar, said the University has never sold or given student information to third parties. “We strongly protect [student] information from third parties,” Beste said. She said the University is restricted by federal law not to give student information to the public. Unis said she does not want to be targeted by credit card companies. “I gave my LSU info for school, not for them to make money off of,” Unis said. The survey also said 80 percent of students supported at least one type of limitation for credit card companies on college campuses. Only 67 percent of students supported the ban of selling or sharing of student information with credit card companies. Unis said she does not mind the aggressive tactics of credit card companies. “A college campus is a great place to advertise because college kids need money and credit card companies can make a fortune off of them going into debt,” Unis said. Jeremy Barocco, sociology junior, said he does not own a credit card because he likes saving money. “If I had a card, I wouldn’t have any money,” Barocco said. “I’d feel money was available to me at all times.” The survey said 25 percent of students have paid at least one late fee, and 15 percent have incurred overdraft charges. The survey also reported that 6 percent of students have had at least one card canceled because of non-payment. “People need to wise up,” Barocco said. “It’s ridiculous that people use money they don’t have.” Barocco said people need to be smarter because it is their fault for not having the money to pay their bill. The Louisiana Congress passed the Campus Credit Solicitation Act on July 15, 1999. The law states companies have to register with colleges before they can market to students. It also prohibits companies from taking debt collections from parents or guardians unless they have agreed to be liable for them. If companies violate the law, they are fined up to $1,000 for each violation. “Most college kids are poor and need money,” Unis said. “They will use any resource to pay for school, party and whatever else, and they can do everything they want to do with one swipe.”
—-Contact J.J. Alcantara at [email protected]