Where Credit is Due

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Where Credit is Due

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Summary

 

Credit Card reform went into its second phase last week and credit card companies are furious and lobbying like crazy. For so many ordinary Americans in this economic crisis, credit has become the bane of their existence. GoodB starts a series on the changes in abusive credit card industry practices. This week begins the first in the series on the high price of credit for some of those who can least afford it: students.
Monday, February 22, 2010 - 9:15am

CONTENT: Blog

Student Hazing by Debt
 
The Obama administration is trying to bring relief to Americans with the Student Aid Fiscal Responsibility Act. If passed, this legislation will mandate that all universities and colleges provide low cost loans directly from the Federal Government. The current system for lending money functions like this: Government to Banks to University/College. The new bill will cut out the middle man (banks) and lend directly to parents and students.
 
 

College Credit
 
Lenders had a swell time these past few decades swarming students on college campuses or on Spring Break in beach resorts hawking credit. The plan was for easy profit for big lenders knowing that students would treat credit cards like ATM cards and parents would (more often than not) bail them out of debt. Well, those days are officially over!
 
 
Keywords: Arne Duncan | Credit Card Accountability Responsibility and Disclosure Act | Larry Summers | Pell Grants | Perkins Loans | Sallie Mae | Student Aid Fiscal Responsibility Act | college credit | consumer advocacy | scholarships and grants

CONTENT: Blog