It is now evident that many colleges are directly benefitingfrom credit card companies.

According to Nellie Mae, a prominent lender of finanicial aid,credit card companies are receiving less stringent rules in regardto advertising to young adults. Hence, they are freely marketingand promoting credit cards on college campuses. This results in thedirect push of students to apply for credit cards as soon as theyenter college. This also contributes to the alarming credit carddebt rate because students have easier access to credit cards.

“The unrestricted marketing of credit cards on collegecampuses is so aggressive that it now poses a greater threat thanalcohol or sexually transmitted diseases,” Robert Manning, aGeorgetown University sociologist said in a Consumer Federation ofAmerica report.

This marketing of credit cards on college campuses rings truefor many students at SMU.

“I got my first credit card at the One Stop Shop myfreshman year,” junior Shelley Hill said.

The Consumer Federation of America reported that many collegesand universities not only permit aggressive credit card marketingon campus; they actually benefit financially from this marketing.Credit card issuers pay institutions for sponsorships of schoolprograms and support of student activities.

It appears that many students are choosing to swipe the card anawful lot.

“The average credit card debt among undergraduate collegestudents is approximately $2,748, an increase from $1,879 in1998,” Debra Pankow, North Dakota State University’sExtension Service family economics specialist said, in theuniversity’s online newspaper. She said that today about onethird of college students own four or more credit cards.

The increase in credit card usage can be extremely detrimentalfor students. A study conducted by the Consumer Federation ofAmerica shows that high interest rates and rising balances arealready causing students to face serious financial issues longbefore they leave school.

Nellie Mae stated that excessive debt could lead to poor creditcard reports that can inhibit future plans such as buying a car orrenting an apartment.

Some students think that credit card spending is common on theSMU campus.

“I think credit card spending is especially prevalent atSMU because mom and dad foot the bill,” sophomore ChristinaEdland said. “SMU students for the most part don’tunderstand the value of a dollar.”

Scott MacDonald, a Cox School of Business banking and financingprofessor has a different view of credit card spending.

“Credit cards themselves are not the problem. They are agreat product,” he said. “What is detrimental is thelack of discipline in the use of credit cards.”

I think there is a lot of financial pressure at SMU,”accounting professor Susan Riffe said. “Students feel likethey need to have nice clothes, the right car, etc. to fit in, andthis encourages them to spend more than they have.”

Several SMU students said they used their credit cards fortuition, books, food, entertainment and clothes.

Whatever the cause, excessive credit card spending is receivingmore and more attention from university and collegeadministration.

“We lose more students to credit card debt than toacademic failure,” a University of Indiana administrator saidon the National Parent Information Network’s Web site.

There are many suggestions as to why students abuse creditcards.

“The reason why a lot of students charge everything isbecause of the convenience. They can get the things they want, evenwhen they don’t have the funds for it at that moment,”Mark Casipit, an SMU senior said. ” However, they don’tunderstand that it’s debt.”

Some people think colleges and universities should beresponsible for educating students on the detriments of credit carduse.

It has been suggested that college administrators should notaccept subsidies from issuers, should severely restrict credit cardmarketing, and provide financial handling seminars duringorientation.

MacDonald does not agree with this solution.

“Unfortunately, our society is constantly wanting to findsomeone else to take responsibilities for our actions,” hesaid. “As adults, we must take it upon ourselves to usecredit cards wisely.”

Sophomore Mariah Keith has an even simpler solution to thecredit card problem.

“I don’t think anybody should be allowed to have acredit card unless they understand the terms and responsibilitiesof having one,” she said.