Are credit cards still a problem for freshmen in college?
Yes, credit cards are still a major financial issue for most college freshmen away from home for the first time. There are ways that students can utilize credit in a positive way, but without much high school financial education, without parental supervision, and the ease to apply by which student can apply for and receive new credit lines, most will never get the opportunity to see the positive side of credit until well after college.
Although laws have been passed at the federal level and by many states, credit card companies are still finding new and inventive ways to make sure that broke college kids are able to get plastic. And those freshman students without budgets, without experience, without resources, are typically the easiest targets. According to a 2013 Fidelity study, the average college graduate receives his diploma with $3,000 in credit card debt.
But at least they got a free t-shirt.
For more on this topic, check out our new article on Thursday.