Post by gatormom on Mar 11, 2009 7:18:46 GMT -5
Lawmakers consider cracking down on campus credit
www.dailyherald.com/story/?id=278162&src=109
Nicole Milstead
Daily Herald Staff
3/11/2009
SPRINGFIELD - As Illinois college students stroll across campus on a nice day, they can often pick from a collection of free T-shirts, a hot pizza and even an iPod shuffle. All they have to do is apply for a credit card.
State Treasurer Alexi Giannoulias would like to prevent students from foolishly falling into debt by quickly scooping up these offers, running up thousands on credit cards and regretting it for years.
"We have found in the research we have done offering a student a free pizza, a free T-shirt or a free rain coat on the way to a football game as an enticement to get them to sign a contract is something that impulsive young men or women may find appealing, and next thing they know, they're in their thirties and thirty thousand dollars in debt," he said.
His legislation sponsored by state Sen. Donne Trotter, a Chicago Democrat, would ban credit card companies from providing free gifts.
Schools also would be barred from selling student database information to card companies unless they publicly disclose they do so. If these companies do acquire contracts with the universities, they would be responsible for providing credit counseling to the students younger than 21.
Giannoulias said 91 percent of college students in the United States have a credit card and 46 percent have 4 or more credit cards. The average college student graduates with $3,000 in credit card debt alone.
These rules do not apply to banks trying to get students to sign up for bank accounts.
The proposal, which faced no opposition during a hearing Tuesday, cleared the Senate Higher Education Committee and advances to the full Senate.
www.dailyherald.com/story/?id=278162&src=109
Nicole Milstead
Daily Herald Staff
3/11/2009
SPRINGFIELD - As Illinois college students stroll across campus on a nice day, they can often pick from a collection of free T-shirts, a hot pizza and even an iPod shuffle. All they have to do is apply for a credit card.
State Treasurer Alexi Giannoulias would like to prevent students from foolishly falling into debt by quickly scooping up these offers, running up thousands on credit cards and regretting it for years.
"We have found in the research we have done offering a student a free pizza, a free T-shirt or a free rain coat on the way to a football game as an enticement to get them to sign a contract is something that impulsive young men or women may find appealing, and next thing they know, they're in their thirties and thirty thousand dollars in debt," he said.
His legislation sponsored by state Sen. Donne Trotter, a Chicago Democrat, would ban credit card companies from providing free gifts.
Schools also would be barred from selling student database information to card companies unless they publicly disclose they do so. If these companies do acquire contracts with the universities, they would be responsible for providing credit counseling to the students younger than 21.
Giannoulias said 91 percent of college students in the United States have a credit card and 46 percent have 4 or more credit cards. The average college student graduates with $3,000 in credit card debt alone.
These rules do not apply to banks trying to get students to sign up for bank accounts.
The proposal, which faced no opposition during a hearing Tuesday, cleared the Senate Higher Education Committee and advances to the full Senate.
