New Credit Card Restrictions Could Affect Students
New credit laws went in effect today, and college students are among those affected by the changes. Among the new laws, anyone under 21 years old must have an adult cosigner on a credit card. For students, this is an issue as building credit is necessary.
“You have to have credit to do anything,” Freshman Samantha Siberini told Phoenix14News, “It’s a way of showing that you are trustworthy.”
Siberini has a credit card for emergencies, but she doesn’t spend excessively. She is trustworthy, but the government doesn’t think she should go it alone.
Jason Springer teaches the Real World Financial Literacy course at Elon, and he doesn’t think this is fair. “They’re an adult and they are 20 years old. Now the government is essentially telling them, ‘no you’re not responsible enough to make those decisions on your own,” he said.
Vice President of the State Employee’s Credit Union Windy Young disagrees. She said the changes will help students avoid massive debt upon graduation. “I think it’s going to be more positive for you,” she said.
But Professor Springer thinks students should take responsibility for their financial decisions. “Legally these people are adults and should be, I believe, treated as such,” he said.
“I have it and then I can hand it over and we’re done. I don’t have to worry about it later,” she added.
There is always an exception to the rue, and this is no different. Those under 21 years old with a substantial job can be approved alone as long as they can demonstrate an ability to pay. The new law also prevents credit companies from soliciting on college campuses, meaning free pizza and gifts will not longer be offered for students who sign up for credit cards.News