The college student's guide to credit cards
Danielle Bly
Issue date: 11/6/09 Section: News
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The Realities of Student Credit Cards- What You Should Know:
A 2008 study by Sallie Mae revealed that 84 percent of undergraduates own at least one credit card, and over 50 percent of all college students own four or more credit cards. In addition, the average number of cards has grown to 4.6 per undergraduate student.
Along with a growing number of credit cards, the study showed that outstanding credit card balances are also increasing. Information showed that students have:
Record-high credit card balances: The average balance grew to $3173, and 21 percent of undergraduates carried balances between $3000 and $7000 (up from the last study in 2004). In addition, the average college senior will graduate with $4100 in credit card debt.
Fewer students with zero balance: The percentage of students with a zero credit balance dropped dramatically from 69 percent in 2004 to only 15 percent in 2008.
More students charging educational expenses: Since 2004, the percentage of students who charge expenses such as textbooks and school supplies rose from 85 percent to 92 percent in 2008. In addition, 30 percent of students in the study stated that they pay their tuition with a credit card (which is now worse than ever because colleges are charging service fees for paying tuition with a credit card - up to 3 percent!).
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