Sep 9, 2008 6:01 pm US/Central
Rules Could Curb Credit Card Companies On Campuses
CHICAGO (CBS) ―
College credit used to refer to your class load. These days, it's often about a student's debt load.
Many graduating seniors have four or more credit cards, and are thousands of dollars in debt.
State Treasurer Alexi Giannoulias vowed Tuesday to crack down on companies preying on Illinois students.
Credit card companies are a visible presence on most college campuses. They set up camp in front of student unions or busy quads.
Students are inundated with credit card offers and, many don't realize there may be huge hidden fees involved.
"It's hard for students to believe that a $10 t-shirt or $4 sandwich could cause financial hardships for years and years to come and have tragic consequences," Giannoulias said.
Now he wants to protect students' future credit.
"It's a dangerous equation," he said. "Easy credit plus young vulnerable students equals big financial trouble."
The treasurer has introduced a new bill to prohibit credit card companies from campus giveaways. It bans credit companies from offering any gifts when marketing on campuses, and requires colleges and universities to conduct financial literacy education for freshmen.
It also prohibits the selling or transferring of student names and personal information to credit card lenders.
Giannoulias' legislation applies to all Illinois colleges, universities and their affiliates.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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