A recent article in the Shreveport Times reported that over the past year, 92% of college students used a credit card to pay for education-related expenses such as textbooks. The survey, conducted by Sallie Mae, the student lender, indicated the use of credit cards to pay for education-related expenses rose 7% from 2004 to 2009.
And a 2006 survey of students at Louisiana State University showed that one in five students who responded had maxed out their credit cards.
Congress and President Obama are poised to make some changes in this area. Senator Chris Dodd, D-Conn., has authored a new bill which, if passed, would require someone 21 or over to cosign for a credit card for a college student under the age of 21. At the same time, President Obama is meeting with the largest credit card issuers in the country and asking for concessions. These include elimination of unfair rate increases, longer delays before rate changes go into effect, and more notice before a change in the due date of a cardholder’s bill.
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