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Running head: ELIMINATING STUDENT DEBT 1

Eliminating Student Debt

Bonnie Heath

COM/156

August 29, 2010

Lori Wilson

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ELIMINATING STUDENT DEBT 2

Eliminating Student Debt

What I hope to accomplish in this paper is to show the reader that because of the

predatory practices and shady deals with the different schools, credit card companies should not

be allowed on campuses marketing to college students. The level of debt in society today is high

enough and credit card companies do not need to be targeting college students just to increase

their number of customers.

Even though they should be allowed to market to college students because it is a good

way to learn about credit cards and how to handle them responsibly, credit card companies

should not be allowed on campuses to market to college students. College students already have

enough debt as it is if they do not receive scholarships or help from their parents, and college

students, fresh out of high school, do not know enough about personal finance and personal

credit to be responsible about credit cards. I happen to agree with this statement because when

one thinks about it, college students who do not have scholarships or help from their parents are

already in enough debt as it is.

One argument for credit card companies being allowed to market to college students is

credit cards are a way for students on their own for the first time to establish a good credit score,

which then can be used later in life to obtain loans for cars or homes. Credit card companies

market to college students in the hopes that once that student has that card in his or her wallet

that he or she will keep that particular card for years and its upgrades in the years to come

therefore netting the credit card company more profit over a longer period.

Because of their predatory practices and shady deals with the different schools, credit

card companies should not be allowed on campuses marketing to college students. These deals,

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researchers. The report goes on further to say that many teachers would be open to more

learning opportunities in both financial education subjects and teaching methods.

According to Kim Clark of the United States News and Report because many states are

decreasing the number and size of grants that they give to recent high school graduates, college

students already have enough debt if they do not receive scholarships or help from their parents.

Although parents may have been able to work their own way through college, in the past 20

years tuition has risen much faster than wages from jobs and financial aid. Because many

students do not receive financial help, they must work enough hours to pay rent, utilities, and

other basic living expenses, leaving less time and attention for studying. As a result, the student

often drops out of school. Although many parents or guardians do not or cannot provide financial

support, colleges and government financial aid agencies expect them to contribute to the costs of

educating their dependent children.(Clark, 2010). Generally, the government and colleges

expect parents to contribute to a student's education until the student turns 24, becomes a veteran,

gets married or becomes a parent (Clark, 2010, para. 7).

In conclusion, although they should be allowed to market to college students because it is

a good way to learn about credit and how to handle it responsibly, credit card companies should

not be allowed on campuses to market to college students for two main reasons. First, college

students do not know enough about personal finance and personal credit to be responsible about

credit cards. Most important, college students already have enough debt as it is if they do not

receive scholarships or help from their parents and there is already enough debt in this country

without credit card companies tricking students who do not know better into getting these credit

cards, adding to it.

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References

Clark, K. (2010, January 20). Should kids pay own college costs?. U.S. News & World Report.

Retrieved from

http://articles.moneycentral.msn.com/CollegeAndFamily/SavingForCollege/should-kids-

pay-own-college-costs.aspx?page=1

Protess, B. & Neumann, J. (2010, June 8). Banks Paying Colleges For Students Who Rack Up

Credit Card Debt. The Huffington Post. Retrieved from

http://www.huffingtonpost.com/2010/06/08/banks-paying-colleges-for_n_604109.html

U.S. PIRG Education Fund. (2008, March) The Campus Credit Card Trap Report. Retrieved

from http://www.truthaboutcredit.org/campus-credit-card-trap

2010 Board of Regents of the University of Wisconsin System. (2010). Study shows need for

teacher training in personal finance. Retrieved from http://www.news.wisc.edu/18148