Eliminating Student Debt
August 29, 2010
Eliminating Student Debt
What I hope to accomplish in this paper is to show the reader that because of the predatory practices and shady deals with the different schools, credit card companies should not be allowed on campuses marketing to college students. The level of debt in society today is high enough and credit card companies do not need to be targeting college students just to increase their number of customers.
Even though they should be allowed to market to college students because it is a good way to learn about credit cards and how to handle them responsibly, credit card companies should not be ...view middle of the document...
These deals, called affinity agreements, are deals between banks and schools in which the bank pays the school one dollar for every student who keeps his or her credit card open for 90 days. Some colleges that still engage in the practice even sink so low as to sell student and alumni names and addresses to credit card companies while defending its actions. Some colleges even receive bonuses when students go into debt. “Some of the nation's largest and most elite universities stand to gain millions of dollars from selling the names and addresses of students and alumni to credit card companies while granting the companies special access to school events” (Huffington Post, 2007, para. 1). According to a study conducted by the United States Public Interest Research Group (PIRG) Education Fund, “four out five (80%) students supported adoption of strong campus credit card marketing principles” and of those students who supported stronger principles “nearly three-in-four students (74%) asserted that only cards with fair terms and conditions should be marketed on campus. Students also overwhelmingly (67%) opposed the sale or sharing of student lists (which can include home and dorm addresses, email addresses and land line and cell phone numbers) with credit card companies.”
Many first time college students assume that they will learn to handle their personal finances in college so they do not know enough about personal finance and personal credit to be responsible about credit cards. The truth of the matter is that many of the finance courses taught in college do not teach students how to improve their spending habits or how much to put in an emergency fund. The best way to remedy this issue is to require high school students to take either a personal finance course or to pass a competency test for personal finance before graduating from high school. According to the 2010 Board of Regents of the University of Wisconsin System (2010), “Unfortunately, relatively few teachers believe they are adequately prepared to teach such topics, according to a study by two University of Wisconsin- Madison researchers.” The report goes on further to say that many teachers would be open to more learning opportunities “in both financial education subjects and teaching methods.”
According to Kim Clark of the United States News and Report because many states are decreasing the number and size of grants that they give...