Credit-card reform for students

May 27, 2009 | By Jim Kim

Many a college student has gotten himself into trouble when it comes to credit card debt--not to mention the problems caused by student loans. But recently passed legislation offers some new proposals for students.

Business Week notes, "Without a co-signer, full-time college students under 21 will be confined to what amounts to credit-card training wheels, with credit restricted to 20 percent of a student's income. The presence of a co-signer protects college students from sudden rate increases; under the new law, a student's co-signer has to approve any such hikes."

But the article notes that the law doesn't address other areas, like affinity deals that makes some schools partners with card companies. All of which raises the issue: Should schools be encouraging student credit card use and abuse. For example, the Michigan Alumni Association has received $25.5 million over time for info on students and alums gathered from card companies.

For more:
- here's the article