April 28, 2009

Protecting students from credit…and themselves

Posted in Misc at 1:04 PM by Joe From Boston

According to APP.com,Congress is finally attempting to stop predatory lending practices towards the 18-22 year old target group, as they’re the most likely to get in waaaaaaay over their heads.

I definitely disagree with the author’s comment about requiring financial literacy classes being a bad idea.  I think they’re a great idea.  Most 18-year-olds can’t balance a checkbook and many see credit cards as “free” money.

Bring on the financial literacy classes!

Click here to read the whole article, or read the excerpt below.

“According to a survey by student lender Sallie Mae, undergraduates have an eye-popping average of $3,173 in credit card debt, and 92 percent of college students use the high-interest credit cards to buy textbooks and to pay for other education expenses.

In response, bills are working their way through Congress designed to save these young borrowers from predatory lenders — and from themselves. Some of the provisions in the proposed legislation are overkill, such as requiring those under 21 to complete a financial literacy course. But other requirements could provide important benefits for young people and adults alike.”