College graduates have come to accept student loan debt as an inevitable consequence of obtaining an undergraduate or graduate degree. New Jersey is now stepping in to prevent unmanageable credit card debt from adding to the financial challenges faced by graduates, and it is doing it by putting limitations on colleges that have been accepting money from credit card companies.
The federal government was the first to pass legislation in 2009 to restrict the practices of credit card companies that have preyed upon college students with easy to obtain high-interest credit cards. The Credit Card Accountability, Responsibility and Disclosure Act sought to restrict direct marketing of credit cards to college students but did not prevent colleges from entering into marketing agreements with credit card companies. One nationally-known university made $4.2 million from credit card companies for its participation in marketing credit cards to students.
The New Jersey legislation prohibits public colleges and universities in the state from entering into direct marketing agreements that offer credit cards to students. The purpose of the legislation is to end the current practice that leaves many students graduating with unmanageable monthly payments attributable to the allure of easy credit offered through predatory practices on college campuses throughout New Jersey.
Students who become delinquent in making the monthly payments on their credit card debt soon fall prey to creditor harassment and threats of lawsuits and judgments. An attorney can offer options that can eliminate credit card debt, stop creditor harassment and eliminate unmanageable monthly payments.
Source: The Paramus Post, “Riley & Wagner bill to prevent credit card companies from preying on college students continues advancing,” Mel Fabrikant, Dec. 6, 2012