Economic Shock to Students: Cancellation of Credit Cards

February 28, 2010 (LPAC)—As of February 22nd, the so-called credit card industry "reform act" went into effect, and students will be among the hardest hit. As of last Tuesday, Feb. 23, banks and credit card companies were sending out notices of cancellation and reduction of credit lines. College students will no longer benefit from their parents' credit ratings, and will therefore be hit with wholesale cancellations of credit. The credit card reform bill, which was passed last Spring, will now require students to either have enough income to show that they can repay credit cards themselves, or have a parent or guardian co-sign the credit line.

According to one senior Democratic Party source, many blue-collar families rely on these credit lines to enable their kids to attend college and the impact is going to be felt immediately. This will clearly be one of the factors feeding into the protests that have already hit college campuses in California because of education budget cuts, and will soon spread around the country.

As of 2009, more than one-third of students put their college tuition on credit cards, according to a survey by Sallie Mae, the largest originator of federally insured student loans in the country; this is up from 24% of students in 2004. In addition, Sallie Mae also found that more than 50% of students have four of more credit cards, with an average balance of $3,173, which is an all-time record. The situation is even worse this year with millions more jobs lost since Obama took office. The bottom line is that students in the lower 80 percent income brackets use their credit cards to buy food, books, pay rent and other necessities, including tuition.

It is not surpising that recent polls show that 51% of people under the age of 29 who voted overwhelmingly for Obama (79%) in 2008, said they won't do that again.

Athugasemdir

[sherrymathew93 (IP-tala skráð) 2.3.2010 kl. 07:02]

As of 2009, more than one-third of students put their college tuition on credit cards, according to a survey by Sallie Mae, the largest originator of federally insured student loans in the country; this is 1z0-051 up from 24% of students in 2004. In addition, Sallie Mae also found that more than 50% of students have four of more credit cards, with an average balance of $3,173, which is an all-time record. The situation is even worse this year with millions more jobs lost since Obama took office. The bottom line is that students in the lower 80 percent income brackets use their credit cards to buy food, books, pay rent and other necessities, including tuition.