ERIC Number: EJ793933
Record Type: Journal
Publication Date: 2007
Reference Count: N/A
Follow Up: Credit Card Caution
Cahill, Timothy P.
New England Journal of Higher Education, v22 n2 p21-22 Fall 2007
In "Pushing Plastic," ("The New England Journal of Higher Education", Summer 2007), John Humphrey notes that many college administrators justify their credit card solicitations by suggesting that credit card access will help students learn to manage their own finances. Instead, credit card debt will teach thousands of students a lesson they will never forget. The "earnings premium" enjoyed by college graduates is well-documented: college graduates earn significantly higher annual incomes than high school graduates. So should educators really be concerned about the ability of college students, with their higher income potential, to pay their credit card bills? Should a state treasurer's office dedicate time to improve the financial knowledge of these privileged young adults, when many underserved Americans are marked with poor credit to the point where they may be out of rational financial options? The answer is yes. A number of groups help people who are unbanked by traditional financial institutions due to their poor credit histories. College students, meanwhile, are a demographic that has proven particularly naive and inexperienced in personal financial decision-making.
Descriptors: College Students, Economically Disadvantaged, College Graduates, Young Adults, Credit (Finance), High School Graduates, Debt (Financial), Money Management, Income
New England Board of Higher Education. 45 Temple Place, Boston, MA 02111. Tel: 617-357-9620; Fax: 617-338-1577; e-mail: email@example.com; Web site: http://www.nebhe.org/
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education
Authoring Institution: N/A