College and Credit Cards Don’t Mix

And this is assuming you can even get one these days. But arriving freshman typically have no credit history which means good credit history/our next victim by the credit card industry.

The Insurance Information Institute recently noted:

A recent study by Sallie Mae, a leading provider of student loans, shows that students are using their credit cards more and more frequently, and racking up more debt than in years past. According to the study, the average undergraduate carried $3,173 in credit card debt in 2008. College seniors graduated with an average of $4,138 in credit card debt, up 44 percent from 2004.

The Insurance Information Institute provides tips for parents and students:

Parents and students need to work together to develop a financial plan for college. Specific educational expenses including tuition, room and board, books and fees can be viewed as ?good debt? and can be covered through student loans, grants and the like. Day-to-day college expenses, including personal needs, transportation costs, telephone and other incidentals, are the types of expenses that students should not charge on credit cards.

Read more helpful hints from III.

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