When students leave home for college, they experience many newfound freedoms. They can go to bed whenever they desire. They can eat whatever they like. They can even make their own decisions about going to class. An additional freedom students may not expect is the freedom to sign up for credit cards... When students leave home for college, they experience many newfound freedoms. They can go to bed whenever they desire. They can eat whatever they like. They can even make their own decisions about going to class. An additional freedom students may not expect is the freedom to sign up for credit cards.

Students are often bombarded by credit card offers. Many get two or three offers a week through the mail or by phone. However, most credit card companies solicit students directly on campus. During most class days, credit card company representatives are in designated campus locations soliciting students to fill out applications in return for a free gift. Because of limitations with First Amendment requirements, these representatives are allowed on campus. Most often, they are here at the invitation of student organizations to conduct fund-raisers. Credit card companies hope parents will help if students get in debt over their heads. A February 2001 Raleigh News & Observer article noted that, as of 1999, 81 percent of students have received a credit card by the end of their freshman year. At NC State, students who seek assistance from Student Legal Services about debt problems own 4.77 cards, with an average balance of approximately $7,000. This amount of credit card debt is in addition to any loans the student is obligated to pay back after graduation.

Students also routinely sign up for credit cards they have no intention of using simply to get the free merchandise. Two or three years later, however, they may begin to receive collection notices for credit cards they requested, but never received or used. Numerous credit card applications, even if the card is never used, can hurt a student’s chances for credit in the future. It takes an average of six months for Student Legal Services to try to correct even fraudulent credit card notations.

A negative notation on a person’s credit history remains for seven years. This can mean that students are subject to a higher rate for borrowing money, have to have cosigners, or may be unable to qualify for a mortgage. In some instances, this can also affect the student’s ability to obtain an apartment, insurance, employment or financial aid. Credit card companies also can choose to sue, which is a matter of public record. Students forced into bankruptcy find it is reflected on their credit history for 10 years, and that also becomes public record.

Student Legal Services’ staff members will work with students who find themselves in credit card debt to develop a budget and serve as buffer to harassing collectors. Once an attorney is involved in the case, a creditor is prohibited from contacting the debtor. Student Legal Services offers assistance that will prevent lawsuits and provide students with alternatives to bankruptcy. All registered NC State students are eligible for this assistance.

When used properly, credit cards can help establish a good credit history. Used improperly, the consequences are severe. With your help, we can arm our students with information to help them avoid those credit card dangers.

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Questions about NC State? Answers are just a click, tap, or ring away. NC State's parents' web site features everything from a job internship network to VIP discount program information. Use the site to check on current tuition and fees, find out about events just for parents, or boost your student's spirits with an e-postcard.
The university also offers the Parents' HelpLine, a toll-free number operated by the Parents & Families Services program, to respond to your concerns. Call 877-568-5733 or email ncsuparents@ncsu.edu for personal assistance with your questions.*
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Please help us keep our records up to date!If you have received this newsletter in error or have an address correction to make, please call, email or write the Parents and Families Association. You may call toll free during business hours at 877-568-5733 or email us at ncsuparents@ncsu.edu. If you prefer "snail mail" , write to us at:

Parents and Constituent Services
Box 7314
Raleigh NC 27695-7314
-----------------------------------------PACKParents is published by the
NC State Alumni Association
Campus Box 7503
Raleigh, NC 27695-7503
(919)515-3375/800-627-2586
Renee Wolcott, Editor
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