When students begin their studies at a university, they are quickly greeted by give away and rewards if they apply for student credit cards. Representatives trying to convince kids to apply for student credit cards have become more prevalent over the years. Students are an easy target. Most of them are discovering a new sense of autonomy, as they take charge of their daily lives. Student credit cards may seem like the perfect ticket to financial freedom. Some lawmakers, student groups and university administrations are taking steps to reel in marketing behaviors they feel are predatory to financially inexperienced students. For example, solicitations for student credit cards on the grounds at Rutgers are no longer allowed. Other campuses may see changes soon, as many state legislatures are cracking down on practices regarding the marketing of student credit cards. California, Oklahoma, New York and Texas are among the states that have passed laws that rein in marketing and solicitations of student credit cards, and Illinois is currently debating similar restrictions. The first week of February, New Jersey joined the list of states trying to crack down on predatory solicitations of student credit cards on campuses. A bill was introduced that requires companies to provide educational programs for students prior to any student credit cards being issued. The programs must provide an understanding of how debt affects credit, how interest on balances is calculated, the different interest rate terms and the consequences of not paying balances in full each month. The law will target incentives and give aways, as well. New Jersey legislators, like those of the states that preceded them, are hoping to prevent bad credit habits in the students on their campuses. Credit cards can be a useful financial tool, if used appropriately, and legislators want to give students a chance to make sound decisions about those cards.
The country is coming to terms with the economic downturn and consumers are restructuring their financial goals. The free wheeling days of easy credit and a housing market that kept going up lured many into thinking they would not have to be responsible for their own credit habits. As a result, some are now reworking their budgets and striving to eliminate credit card debt. The efforts of many state legislatures and university administrations to tame the marketing of student credit cards aim to prevent students from falling into the trap that so many consumers have fallen into. If students learn to make sound decisions regarding their finances and spending habits in college, they will carry that with them into adulthood.