As the Dad
of a college sophomore, I'm amazed at how many credit-card offers he's
getting. He could easily borrow $20,000 before the card companies had
any idea what was going on. So I'm happy that U.S. PIRG -- the group
that grew out of campus public interest research groups started by
Ralph Nader in the 1970s -- is pounding the drum about
this. Credit card companies are being too aggressive at recruiting
college kids. Some of the practices sound like subprime mortgage
shenanigans. To the extent that the universities are encouraging this
in exchange for "revenue sharing," it's really objectionable. From the
U.S. PIRG press release:
Credit card companies are targeting college
students with enticing teaser offers for low-cost credit cards that
turn into a credit card “trap” with high fees and penalty interest
rates. Often, the card companies set up tables right on campus and hand
out free gifts to applicants. The students, already facing high and
increasing costs of education, may be misled into taking on high-cost
credit card debt. The project will educate students about credit card
practices and will urge colleges to adopt principles for responsible
credit card marketing.
Campaign will include counter-marketing educational projects on 40
campuses across the country, a new website, a coalition urging colleges
to adopt marketing principles, and publication of research reports on
credit card marketing practices. This project of the U.S. PIRG
Education Fund and participating PIRG student chapters is funded by the
Ford Foundation.
