Chairman Miller Statement on Report on College Students and Credit Card Companies’ Marketing Practices

Thursday, March 27, 2008

WASHINGTON, DC -- U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, issued the following statement on a new survey of credit card use among college students released today by the U.S. Public Interest Research Group. The study found that, among college students who have a credit card, more than half reported using them to help pay for books and nearly a quarter reported using them to help pay for tuition. In addition, a majority of students said they would support efforts to reform on-campus marketing activities by credit card companies.

“This report shows the extent to which credit card companies are using aggressive marketing tactics to take advantage of college students faced with increasing prices for tuition, textbooks, and other college-related expenses. It’s especially troubling that some credit card companies have entered into lucrative arrangements with colleges themselves. Colleges should help their students manage their personal finances responsibly, not cut deals with credit card companies that can wind up costing students dearly.

“At a time when many students and families are already carrying heavy student loan debt, it is worrisome that a significant number of students are relying on credit cards to help pay for their tuition, their books, and other education-related expenses. Last year, Congress provided some long-overdue financial relief for students and families working hard to pay for college by investing more than $20 billion in federal college aid. As this report demonstrates, there is a real and urgent need for our additional efforts to lower tuition and textbook prices and to make sure that students are fully aware of their federal college loan borrowing options before turning to private loans and credit cards.”

Miller is the author of legislation to reauthorize the Higher Education Act, the College Opportunity and Affordability Act, that would take steps to rein in rising college tuition prices, would make textbook costs more manageable for students, would protect students from deceptive lender marketing practices, and would encourage students to maximize their federal student loans before borrowing private loans. That bill was passed overwhelmingly by the House in February. For more information, click here.

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FOR IMMEDIATE RELEASE
Contact: Tom Kiley / Rachel Racusen
2181 Rayburn House Office Building
Washington, DC 20515
202-226-0853