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 The average
debt of a college student this year is $18,800, compared with
$8,200 in a comparable survey in 1991, according to studies done
by The Boston Globe.
In contrast with student debt, 55 to 60 million average American
households have an average of $7,000 in credit card debt, according
to the Consumer Federation of America.
"Having a credit card is a responsibility to be taken seriously,"
said Jerry Wallace, vice president of finance and administration.
"Hopefully, we know the pros and cons."
ASUI Senator Dan Noble, holder of five credit cards, agreed with
the serious responsibility, and has seen the effects of credit
card debt first hand.
"School expenses are pricey, and the Bookstore accepts VISA.
It's easy to be continually in debt, and I know a lot of other
students in debt" Noble said.
Tuition and fees at public and private colleges have increased
an average of 25 percent for the period, which is one reason
for the students' debt increase, according to CNN. Another factor
is that more of today's financial aid comes in the form of loans
rather than grants.
While Noble tries to use his credit cards for necessities, he
has seen other students use them frivolously. "Some parents
give their kids credit cards when they go to college and they
just rack up the charges."
However, UI does benefit when alumni use their affinity card
with First USA Bank. UI has made arrangements with First USA
Bank, and has given them exclusive rights the UI name and logo
in the credit card business.
When an alumni uses the credit card, the school receives a royalty
from the money First USA Bank receives.
"Basically, they were willing to pay for use of our good
name," said Harold Gibson, director of Alumni Relations.
The UI is given a $50,000 flat guarantee according to Gibson.
"We usually meet it. (The card) has been a nice generator."
Gibson said that the school gives out contact information (names,
addresses, phone numbers) for UI alumni in order to fulfill their
end of the arrangement.
However, Wallace said that giving out student information is
not a normal practice.
"We do not give out information, it is information we try
to protect," Wallace said. "However, it seems they
have ways to track it."
However, Michele Valiquette, junior majoring in computer science,
questions the university. Upon receiving a phone call from a
solicitor, Valiquette asked how her name came to be put on a
list of callers. She was told the UI had provided the information.
"It's really bothersome," Valiquette said. "Once
one of those companies has the information, they all call you."
The solicitor was unavailable for comment.
Wallace said UI has not been able to figure out how credit card
companies have access to student information. "We can't
prevent their searches. They still have access to phone books
and directories."
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Students battle credit card debt, keeping personal info secure