The Plastic School of Hard Knocks

August 6, 2008, 9:52 pm

A new school year is about to begin in the school of hard knocks. College students will face a wall of credit card offers.

It doesn’t seem logical. Why would credit card companies want to account unemployed holders who are usually low on funds, and will have difficulty making their monthly payments?

Credit card companies do not make billions off people who pay their balance in full. Credit card companies make their billions from high interest rates and late payment fees. Most financially illiterate college students are perfect customers for credit card companies.

And credit card companies have help from an unlikely source. Colleges and universities are in cahoots with the credit card companies! Many alumni associations and schools make money by referring students to apply for credit cards and, now, even debit/student ID cards! The primary education many of these students who fall for these offers being pushed by schools will receive may come from the school of hard knocks.

Read about this in “Parents face a perfect storm: college kids and plastic” .

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