Pizza, beer, debt

The credit card practices of college students was discussed by the
House Subcommittee on Financial Institutions and Consumer Credit.
Rep. Carolyn Maloney (D-N.Y.) said that college students are targeted
by credit companies and likely to end up with high debt. She
continued, saying students are often rewarded for releasing their
personal information to credit card companies with items like t-shirts
and pizza.

According to Christine Lindstrom of the U.S. Public Interest Research
Group, decreased federal and state funding for education causes
students to pay for larger shares of their education and often
necessitates credit cards. Lindstrom said her organization is working
to educate college students on financial responsibility and how to be
a good consumer with a credit card. Lindstrom’s organization also
wants to give students the option to prevent universities from
releasing their names to credit card companies.

Rep. Jeb Hensarling (R-Texas) reminded the committee that college
students are adults and though they often use credit cards for
inappropriate purchases, Congress should not deny them their right of
economic freedom. Hensarling said he fears that a solution would have
unintended damaging effects and suggested toughening anti-fraud laws
that prevent minors from being given credit cards. Brett Thurman, the
student-body president of the University of Illinois at Chicago,
stated that students’ issues are directly linked to high educational
costs and that credit card companies should not be able to give cards
to students that have no annual income.