Cut up those cards: Student debt on the rise
Amanda Kaufold
Issue date: 4/30/09 Section: Features
Credit card maxed out lately? If you answered yes, you're not alone-according to an article published in USA Today, student credit card debt is on the rise.
The article reports that, "the average undergraduate carried $3,173 in credit card debt last year, the highest level since Sallie Mae began collecting this data in 1998. In 2004, the last time the study was done, students carried an average of $2,169 in card debt."
The article cites the rising cost of education alongside the fact that many private lenders are giving out fewer loans, resulting in students turning to their cards to pay for college expenses, as a possible cause behind this surge.
Katherine Fico, a Sacred Heart University junior, said she has been experiencing the strain of debt due to educational expenses recently.
"With the cost of textbooks and other general supplies alone, I've been having to cut back a lot on other things just so I can keep my card's balance down as low as possible," said Fico.
The report also finds that not only is credit card debt in general on the rise, but the higher the grade level of the student, the higher his or her debt.
Senior Kristen Walsh, affirms this finding with her personal experiences as a cardholder.
"I've definitely found that it's been harder and harder to keep my credit card balance down since freshmen year. I think that when people start college, they usually have some money saved up so, for awhile, they use that to pay off their cards, but that eventually runs out so then it turns into a game of catch up," said Walsh.
Julie Savino, Sacred Heart University's dean of financial assistance, said in response to this report, "students and their families should think twice before pulling out a credit card to cover educational expenses.
In fact, students should think hard before using credit cards for anything except an emergency.
"Students and their families have been using credit cards to pay educational expenses for 'convenience' or because expenses happened to sneak up them.
The article reports that, "the average undergraduate carried $3,173 in credit card debt last year, the highest level since Sallie Mae began collecting this data in 1998. In 2004, the last time the study was done, students carried an average of $2,169 in card debt."
The article cites the rising cost of education alongside the fact that many private lenders are giving out fewer loans, resulting in students turning to their cards to pay for college expenses, as a possible cause behind this surge.
Katherine Fico, a Sacred Heart University junior, said she has been experiencing the strain of debt due to educational expenses recently.
"With the cost of textbooks and other general supplies alone, I've been having to cut back a lot on other things just so I can keep my card's balance down as low as possible," said Fico.
The report also finds that not only is credit card debt in general on the rise, but the higher the grade level of the student, the higher his or her debt.
Senior Kristen Walsh, affirms this finding with her personal experiences as a cardholder.
"I've definitely found that it's been harder and harder to keep my credit card balance down since freshmen year. I think that when people start college, they usually have some money saved up so, for awhile, they use that to pay off their cards, but that eventually runs out so then it turns into a game of catch up," said Walsh.
Julie Savino, Sacred Heart University's dean of financial assistance, said in response to this report, "students and their families should think twice before pulling out a credit card to cover educational expenses.
In fact, students should think hard before using credit cards for anything except an emergency.
"Students and their families have been using credit cards to pay educational expenses for 'convenience' or because expenses happened to sneak up them.
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