Dorman Praises College Credit Card Protection Bill
A bill that would protect college students from credit card solicitors today earned the praise of Rep. Joe Dorman (pictured).
House Bill 1307, by Rep. Ben Sherrer (D-Pryor Creek), would prevent state universities from releasing students' personal information to commercial solicitors without the student's prior consent. The measure would require on all enrollment forms an option for the student to consent to his or her personal information to be released by the university upon request. If the student does not opt in to the release, his or her personal information could not be released by the university.
In 2003, Dorman authored a measure that would have prohibited consumer credit sales to any person younger than 22 unless the applicant had a stable, steady income and parental consent to incur the debt. Though the measure died in committee hearings, Dorman has steadfastly championed protecting students from debt peddlers for years.
Dorman said the onslaught of credit card solicitations facing college students is too hard for many young students, especially those from poorer families, to resist.n"Our students get very little or no instruction at all regarding personal finances in high school and many have no experience handling money on their own," said Dorman. "The opportunity to have major purchasing power just by signing your name is both enticing and too often devastating to these kids. Representative Sherrer's bill is an opportunity to protect our children's futures; it's as simple as that."
Studies have shown that American college students carry credit card balances of nearly $3,000 and half of those students have at least four credit cards in their wallet. In Oklahoma, a student's personal information is automatically subject to the state Open Records Act with no requirement to obtain the student's consent, and credit card lenders and banks are inundating students with access to easy money.
A 2003 study by the Oklahoma State Regents for Higher Education found that 92 percent of state university students owned at least one credit card by the end of their sophomore year and carried an average balance of $2,607. The study also found that two of the most significant factors influencing the students' decisions to sign up for the cards were on campus pre-approved solicitations from credit-card issuers and general mail solicitations from banks and other financial institutions. According to the study, most issuers did not ask the students about their expected salaries upon graduation or appear concerned about the students' ability to repay their debt. The study reported that approximately 30 percent of students who had the ability to pay off their debt still reported anxiousness that affected their ability to concentrate on studies or take part in extracurricular activity, while the same number reduced their academic load and took a job to pay off the debt. About 57 percent of students with less ability to pay off the debt reported the same concerns. Nevertheless, he said, "the trend nationwide is for universities to find new ways to generate revenue. There are far better ways to do it than to mortgage the futures of the very lives they have been entrusted to protect."
House Bill 1307, by Rep. Ben Sherrer (D-Pryor Creek), would prevent state universities from releasing students' personal information to commercial solicitors without the student's prior consent. The measure would require on all enrollment forms an option for the student to consent to his or her personal information to be released by the university upon request. If the student does not opt in to the release, his or her personal information could not be released by the university.
In 2003, Dorman authored a measure that would have prohibited consumer credit sales to any person younger than 22 unless the applicant had a stable, steady income and parental consent to incur the debt. Though the measure died in committee hearings, Dorman has steadfastly championed protecting students from debt peddlers for years.
Dorman said the onslaught of credit card solicitations facing college students is too hard for many young students, especially those from poorer families, to resist.n"Our students get very little or no instruction at all regarding personal finances in high school and many have no experience handling money on their own," said Dorman. "The opportunity to have major purchasing power just by signing your name is both enticing and too often devastating to these kids. Representative Sherrer's bill is an opportunity to protect our children's futures; it's as simple as that."
Studies have shown that American college students carry credit card balances of nearly $3,000 and half of those students have at least four credit cards in their wallet. In Oklahoma, a student's personal information is automatically subject to the state Open Records Act with no requirement to obtain the student's consent, and credit card lenders and banks are inundating students with access to easy money.
A 2003 study by the Oklahoma State Regents for Higher Education found that 92 percent of state university students owned at least one credit card by the end of their sophomore year and carried an average balance of $2,607. The study also found that two of the most significant factors influencing the students' decisions to sign up for the cards were on campus pre-approved solicitations from credit-card issuers and general mail solicitations from banks and other financial institutions. According to the study, most issuers did not ask the students about their expected salaries upon graduation or appear concerned about the students' ability to repay their debt. The study reported that approximately 30 percent of students who had the ability to pay off their debt still reported anxiousness that affected their ability to concentrate on studies or take part in extracurricular activity, while the same number reduced their academic load and took a job to pay off the debt. About 57 percent of students with less ability to pay off the debt reported the same concerns. Nevertheless, he said, "the trend nationwide is for universities to find new ways to generate revenue. There are far better ways to do it than to mortgage the futures of the very lives they have been entrusted to protect."
Labels: 2007 Legislature, Ben Sherrer, College Credit Cards, Joe Dorman
posted by Mike McCarville @ 5:16 PM
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