The report, authored by Student Monitor, a market research firm, reveals that credit card ownership and debt among college students is declining. Their average credit card balance for 35 percent of students is only $452 down $19 percent from $559 last year.
Beyond that, Student Monitor found that the percentage of students with credit cards declined from 56 percent in 1997 to 35 percent in 2008. At the same time, the percent of students with debit cards after rising from 30 percent to about 70 percent in 2006 dropped to about 60 percent this year.
Citing Student Monitor’s report, Clayton stated that 65 percent of college students with credit cards pay their bills in full each month, a percentage that is higher than the general adult population, he said.
“Today’s student population is very diverse,” he said. “Restricting access to this form of credit would result in great financial hardship for most college students and their families.”
Clayton also reminded the committee that credit cards are a valuable tool for students, serving as an entry point into the world of credit, as a means for making everyday purchases and as a vital resource in emergency situations.
With regard to marketing of credit cards to college students, Clayton maintained that most students get credit cards by visiting a bank branch to begin a broader account relationship. Referring to the Student Monitor survey, he said that only 2 percent of students obtained their cards by filling out an application at a display on campus.
As of yet, no legislation has been passed.
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