The Patrick-Murray administration’s Office of Consumer Affairs and Business Regulation, along with a coalition of colleges and business and government partners, launched the second year of its Project Credit Smarts program – designed to educate college students about credit use, including its dangers and pitfalls.
This year’s program kicked off at Springfield Technical Community College.
"More than ever, building and maintaining a strong credit foundation is important for everyone, particularly young adults," said Gov. Deval Patrick. "Students will gain these valuable life skills through Project Credit Smarts."
The Office of Consumer Affairs, along with nine business and government partners and 17 colleges and universities, offers a crash course for freshmen and other students on surviving the tactics and fine-print catches that can come with credit cards and other credit.
"After I ended up with a lot debt, I had to file for bankruptcy and basically start over again," said Andrea Craddy, a student at Springfield Technical Community College. "My debt was all-encompassing, and it has taken me a long time to get back up, but I’m on a budget and moving forward with my life."
According to a 2009 study by Sallie Mae, a national student loan financing organization, 84 percent of undergrads have at least one credit card, a 5 percent increase since 2005, and half of undergrads have at least four credit cards, a 14 percent increase from 2005. Additionally, the average credit card debt per student is $3,173, and 19 percent of graduating seniors carry balances of more than $7,000. The Office of Consumer Affairs estimates that Boston-area college students as a whole carry over $500 million in credit card debt.
Through Project Credit Smarts, college students get a tutorial on the ins-and-outs of credit-card lingo – such as the differences among a debit card, credit card and charge card; and terms such as "teaser rates" and "dormancy fees" – that they often don’t know, and also are made aware of potential problems created by mismanaged credit cards, from higher interest rates and fees to credit issues later when buying a car or house.
