- Sallie Mae reported record credit card use in 2008 despite restrictions on lending and new consumer credit accounts due to the nation's looming economic crisis. With education costs on the rise, college students turned to credit cards to offset their expenses instead of sources of free aid such as grants and scholarships. College seniors graduated with an average debt load of $4,138 in 2008, according to USA Today; that's 44 percent more than the average debt load in 2004. The average debt load for all college students was $3,173.
- Not every student in need receives a full financial aid package. Some packages include partial scholarships and loans that fail to cover the student's entire tuition. College tuition is generally much higher than the average student's credit card limit. Still, credit cards come in handy as students receive bills for educational fees such as textbooks, lab fees and partial tuition payments. Credit cards for college students also offer perks to entice students to spend money on leisure activities. For example, students can earn points with each credit card use that can be applied toward concert tickets, music downloads or dining out.
- The Credit Card Act of 2009 restricts the marketing practices of credit card companies on college campuses. Credit card companies in the past lured many students into signing up for a card without the student knowing what they were signing up for, according to CNN Money. Credit card companies are no longer able to give away prizes with credit card offers within 1,000 feet of a college campus. Also, consumers younger than 21 are required to get permission from a parent or guardian before increasing limits on joint cards. Colleges and alumni associations are required to release any partnerships or agreements they have with credit card companies, including whether or not they plan to release student contact information.
- Credit cards help students afford the cost of college and build credit history. If students understand the implications of credit card debt, they can make an informed decision regarding whether to wait until after graduation to open a card account or start building credit right away. Credit card companies target college students in an effort to build lifetime customers. However, the Credit Card Act of 2009 bans credit card offers to students under 21 unless they can verify income to support the monthly payments or have a co-signer on the card. This ban includes sending prescreened credit card offers to students under 21.
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