Fact: Student's Credit Card Debt was highest during the Credit Crunch
Sallie Mae released a report that was to many a huge surprise. In the report, it was found out that the average college student has a debt of more than $3,000 accumulated from the near four credit cards that they carry around.
Other finding of the report that was compiled by U.S largest student loan providers shows that:
• The number of students with at least one credit card is 84% of all the college students.
• The average student will have 4.6 credit cads
• Half the students interviewed have more than 4 credit cards
• Of all the students in debts, 21% had balances ranging from $3,000 and $7,000.
• College seniors with debts over $7,000 or above were 19%.
• Few students (11%) have a $0 balances on all their cards.
• 80% of the students did not know just ho large their balances were and displayed shock at their balances.
• 68% of the students have at some point have made purchases with their cards that they knew that they could not be able to make repayments for.
• Although their financial aid covers college expense such as textbooks and school supplies, 92% confirm that they have used their cards for these expenses. Other things that they use them are food, clothes, and cosmetics.
• The number of freshmen that that carry cards has been on the rise from a low of 42% in 2004 to 67% today. Although the number is smaller as compared to 90% of the juniors and 88% of the seniors.
• The college students with credit cards were introduced to them 39% at the time of entering college and the other 36% when freshmen.
Although the Credit card are everywhere in the campuses, very few students (5%) took up their first credit cards from the vendors that offer them on campus.
The students took up their cards:
• 38% after being sent a solicitation mail.
• 19% after being referred by their parent.
Senior students are the most indebted with an average credit card debt at of $4,138, followed by far by the freshmen with an average debt of $2,038. If they accumulated the debts at that rate they could be looking at debts those areas high as $8,000 before they graduate from college.
What makes the debt levels so alarming is that 35% of these students hide their credit standing form their parents since they are also surprised that their card credit card balances are so high.
Other finding of the report that was compiled by U.S largest student loan providers shows that:
• The number of students with at least one credit card is 84% of all the college students.
• The average student will have 4.6 credit cads
• Half the students interviewed have more than 4 credit cards
• Of all the students in debts, 21% had balances ranging from $3,000 and $7,000.
• College seniors with debts over $7,000 or above were 19%.
• Few students (11%) have a $0 balances on all their cards.
• 80% of the students did not know just ho large their balances were and displayed shock at their balances.
• 68% of the students have at some point have made purchases with their cards that they knew that they could not be able to make repayments for.
• Although their financial aid covers college expense such as textbooks and school supplies, 92% confirm that they have used their cards for these expenses. Other things that they use them are food, clothes, and cosmetics.
• The number of freshmen that that carry cards has been on the rise from a low of 42% in 2004 to 67% today. Although the number is smaller as compared to 90% of the juniors and 88% of the seniors.
• The college students with credit cards were introduced to them 39% at the time of entering college and the other 36% when freshmen.
Although the Credit card are everywhere in the campuses, very few students (5%) took up their first credit cards from the vendors that offer them on campus.
The students took up their cards:
• 38% after being sent a solicitation mail.
• 19% after being referred by their parent.
Senior students are the most indebted with an average credit card debt at of $4,138, followed by far by the freshmen with an average debt of $2,038. If they accumulated the debts at that rate they could be looking at debts those areas high as $8,000 before they graduate from college.
What makes the debt levels so alarming is that 35% of these students hide their credit standing form their parents since they are also surprised that their card credit card balances are so high.
[posted by : OFP on Jan. 17, 2011]
TAGS: credit, debt, loans, student, credit card