College Students and College Debt Essay

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College students and credit card debt Prepared for Janice Arrington, Editor March 20, 2013 March 20, 2013 Dear Janice Arrington: The attached report describes the credit card debt college students accumulate while they are away at school; along with other options to avoid graduating with huge interest loans and debt. I’m hoping you will find the results of this study useful in evaluating future development pertaining to college debt. This study will go over: * Student debt * Loans and Credit card interest * Ways to avoid big debt. Research shows that 91% of undergraduates have at least one credit card. The average number of cards has grown to 4.6, with half of college students having four or more cards (source: Sallie Mae : How undergraduates students use credit cards). 25% of the students in US PRIG’s 2008 Campus Credit Card Trap report said that they have paid a late fee, and 15% have paid and “over the limit” fee (source: U.S PRIG, “Campus Credit Card Trap.” This means there will be a charge when your balance goes over your credit limit. I would like to thank you for giving me the opportunity to be a part of this project, and I hope this information is news worthy to make our local newspaper. Problem This study was designed to inform parents of students who are about to leave for college, and what they can do to help to help them avoid sinking deeply into credit card debt. This study seeks to answer the following. * Biggest mistakes parents and students make when it comes to credit cards/ loans. * What can students do before they venture out to college? * Tips on how to avoid credit debt. Background 7.2 % of students drop out of high school due to college debt or financial pressure according to credit.com. “91% of undergraduates use credit cards to pay for educational expenses and 30% admits to using

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