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Unformatted text preview: Running head: CREDIT CARD COMPANIES AND COLLEGE SOLICITATION 1 Credit Card Companies and College Solicitation Travis Prine COM/156 CREDIT CARD COMPANIES AND COLLEGE SOLICITATION 2 Credit Card Companies and College Solicitation CREDIT CARD COMPANIES AND COLLEGE SOLICITATION 3 I believe it is absurd to allow credit card companies to solicit their products on a college campus. Allowing a credit card company to solicit to college students is really intolerable. First of all college students already have enough on their brain by being in college. To add credit card payments to that just doesn’t really seem to make sense to me. Financial budgeting isn’t something that a college student usually understands yet. A young college student is focused on school friends, maybe a partner, and what we’re doing at the end of the school day. Oh yeah, and we are broke. When credit card is issued to a jobless or part time worker, young and naive barely 20 year old, all they see are dollar signs. According to CNN “the average outstanding balance on undergraduate credit cards was $2,169 in 2005”, “according to student loan provider Nellie Mae”. At this same site it was said that an average college student receives 4, yes 4 phone calls a month soliciting credit cards. When a student fills out that form on college campus it places there name in a list for more credit card companies. It makes me worry when I can type in a Google search “college students and credit cards”, and ninety percent of the links are credit card applications. According to studentdoc.com, “A recent study by the National Center for Education Statistics (1) shows that about 50% of recent college graduate have student loans, with an average student loan debt of $10,000. The average cost of college increases at twice the rate of inflation; the College Board (2) estimates that public school costs an average of about $13,000 a year and private schools costs $28,000. So when a student gets a credit card they run right down and put that student loan on their credit card. I should first explain that a college student is already in debt. Most college students have huge loans out with very high interest rates. Most likely when they add a school bill to their CREDIT CARD COMPANIES AND COLLEGE SOLICITATION 4 credit card, there not taking away the loan but adding recent bills and adding to an already full financial load. As a college student who is paying for college financial burdens are very stressful. They don’t have a lot of money or the financial backing of family members. So making those monthly payments is near impossible. The last thing a student needs to worry about is monthly credit card payments. They should be focused on the next test or midterm. Not stressing on college and how they will come up with there next credit card payment. It is understood that credit card companies are in business to make money. Unfortunately the way financial institutions work it allows people to get too far and to deep. This causes a great amount of hardship. It is way too easy for a college student to get a credit card. It is even easier to whip out your plastic and swipe it whenever needed. When the credit card does get used it is usually when it is not needed. They don’t seem to understand that it is a tool. It builds credit, which in turn allows them to receive a car loan, home loan, and many other financial loans that are stepping stones in life. College students have very little time to themselves. They are busy with school functions, academics and attaining their goals in life. It is unfair allowing credit card companies to advertise on college campus, they should take into consideration they need to be focused on their education instead of worrying about credit card payments and debt. Instead of realizing how easy it is for a broke and stressed out college student to slide that plastic in times of financial stress. In this day and age, there is a lot of financial stress and strain on our country. We are at an all time high for unemployment, lost jobs, lost homes and businesses, and the family bread winner losing their lively hood. It is completely inconceivable that the lending institution would add to the already strained financial burden of this nation’s future. The college students of today are the nation’s next leaders, business owners, politics, mayors, police officers and doctors. These are the people that will carry on our nation’s legacy and attempt to take our economy to the next level. To allow credit card companies to place them in a position of possibly having to file for bankruptcy and tarnish their credit history, self respect and possibly their life goals , is not only ill responsible but it is also appalling. We as a country and in the business world should be placing our youth in a positive environment to succeed. Not push them down with debt and financial instability. I understand that a credit card company is another business. They are just doing what they do to keep their business running. This is understandable. I would like to encourage them CREDIT CARD COMPANIES AND COLLEGE SOLICITATION 5 though to make the ability of credit cards less. Just because a student has a great income from financial aid and student loans, doesn’t mean they can afford another payment. I would like to see the terms explained in a more understanding way. I would like to see them make educated and proven decisions on whether an individual is really capable of taking on the loan. College students don’t need added stress. There plates are already full. There is also a lot of responsibility that needs to be learned before undertaking loans and credit cards. When financial situations come up and cause a student to lose focus on their goals, of college and where there life is going it can be detrimental. It can cause them o fail before they even get a chance to get started. These students are our future. The nations well being depends on them. Credit card companies are just doing what they do. They hand out loans as a credit card. They need to make the stipulations of credit card ownership harder. They need to stop soliciting on college campuses. CREDIT CARD COMPANIES AND COLLEGE SOLICITATION 6 References and Sites CNN Nellie Mae Studentdoc.com National Center for Educational Statistics ...
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- Spring '11