College students in Debt

By: Pedro Quintana

When we turn eighteen, we are so excited about the independence we recieve with the right to vote, and buy cigarettes. We don’t realize the letters from major credit cards companies that are ever attacking young naive college students, peer pressuring them to sign up for a credit cards with high interest rates. Students are facing major credit card debt and cannot pay the full amount, and can only afford to pay the minimum amount that is required from the credit card company.

The average undergraduate has over $ 2,200 in credit card debt. Grad students have a credit card debt of about 5,800. Many college students leave in debt with thousands of dollars piled on high-interest credit cards. The average student loan debt of students for a public four year school is around 26,119, for a private four year school is about 29,000. Statistics show that 2 out 5 will have bad credit by the time the reach the age of thirty.

Gerri Detweiler, an education advisor for debt counselor of America stated that more than 75% of undergraduates began their college school year with a credit card with high-interest and that students has no clue of what they get themselves into. “These students exceed their credit limit and don’t make payments. They’re slammed with a over-limit fees and also late fees. The longer these youngsters wait to pay the cards off the worst it gets” She also stated that credit card companies with high interest rates will not work with the clients, their only interest is getting their money.

Millions of college students across the nation acquire credit cards each fall as the semester begins but don’t have a good understanding of how they work. Fresno City College student Carol Castillo said that she feels that the credit cards companies tricked her into a credit card with hidden interest rates and other fees not made clear by the credit card company. “Well , now I am in trouble and now I owe over 3,000 in credit card debt” Castillo stated. A statistic poll showed that over 80% of the students felt they were lured into bad credit card deals.

A third year student that did not wanted to be identified stated that she was over 15,000 in debt. With a car payment, school, bills and a baby on the way she has dug hole with major debt. “I do not have a job and I have a baby on the way it is really stressful because my financial income is Cal-works and financial aid, I really don’t know what I am going to do with my baby being born in July” She stated that she got her first credit card when she was seventeen, from her mother, and at first she new how to manage but when she got layed off she did not know how to pay it off. The credit bills started to go higher in interest fees, after a few months she just couldn’t pay it anymore and let go of the payment, now she gets creditors calling her everyday. “I think if I can go and do it again I would not get pregenant, and diffently not get a credit card”

Other FCC students stressed on campus that they now regret getting a credit card, many stated that they never read between the fine lines. This is part of the problem that college students face, many just get credit cards and don’t know how to spend it or use it .

With college students facing debt, and digging in a hole were they can not get there selves out of. We need to get college students informed of the consequences that are in the near future also on how to repair their credit.

Look For How to recover from debt