A student credit card is designed for high school and
college students and usually works the same way as any credit
card that has been issued by a financial institution. In
general a student credit card merely has a few more
restrictions relative to non-student cards.
College students are leaving their higher
education institutions with more educational loan debt
than ever before. From academic year 1994- 1995 to
1999-2000, the amount postsecondary education students
borrowed through the federal student loan programs jumped
from $24 billion to $33.7 billion. What has led to the
increased use of student loans? Is the rising
indebtedness harming students' futures?
REASONS WHY BORROWING INCREASED
There is no question that postsecondary education costs grew
rapidly during the 1990s. The College Board's most recent
Trends in College Prices report shows that, when adjusted for
inflation, tuition and fee charges at four-year public colleges
and universities increased 49 percent during the decade; at
four-year private institutions, tuition prices rose 32 percent.
Meanwhile, median income for families with a head of household
age 45 to 54 grew by just 4 percent, and appropriations for
Federal Pell Grants increased only 15
percent.
When you are a student a credit score is a
fairly abstract concept. All you want is access to funds
to pay for the things you want and need like clothes,
food, rent, books and tuition. Student credit cards can be
a great tool for being able to acquire the needs and
desires that confront all college students but like all
tools they need to be handled carefully. But it is
ultimately your credit score that will determine how you
will lead your future financial life and vice versa.
Once you get the ball rolling all it takes is to use credit
as a tool to acquire the things you need in life while
consistently paying back what you owe, always on time with at
least the minimum payment amount. A history of late payments
will take your credit rating south in a hurry so be diligent
and don't wait until the last minute. And don't let your
outstanding balances pile up – apply the same discipline you
have as a student to keeping your burgeoning financial life in
balance.
We recommend you to review the details on the card issuer's web site before you submit your application. We make our best effort to maintain up to date information on all offers. However all information is presented without warranty.