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High credit card debt is harming college students' academic performance and long-term credit record,
according to research by Robert Manning, a visiting professor at Georgetown University, in
Washington, D.C. The average college student has more than $2,200 in revolving credit card debt, and
20% of student cardholders carry more than $10,000 in revolving debt, as reported in
Credit Union Magazine's News Now.
This leads to another problem—students working many part-time jobs to pay down debt. This often
leads to poor academic performance and lower retention and graduation rates.
It's a vicious cycle—students with high credit card debt also have a harder time repaying
student loans. In fact, some employers and graduate schools are beginning to reject applicants who
had bad credit records in college. Poor credit ratings also endanger students' ability to rent
apartments, finance cars, and purchase homes once they enter the workforce.
Students will find credit card offers everywhere on campus—inside plastic bags at campus
bookstores, through direct mail, ads on university Web pages, ads in student magazines, and at
various events. Though these offers may be tempting, check with your credit union for the best credit
card rate instead of being sucked into more debt.
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