ROBERTA C. NELSON
Bradenton Herald Staff Writer
August 4, 2004

As soon as Florida college students begin classes this month, each will receive an average of eight consumer credit card solicitations, the state chief financial officer said Tuesday.

"Forty-five percent of college students are in credit card debt, with an average balance of $3,066," said Tom Gallagher, head of the Florida Department of Financial Services. "Undergraduate students carry an average of three credit cards."

Teaching economic skills to all Floridians is a top priority for Gallagher, who launched a consumer economic Web site Tuesday at www.yourmoneyyourlife.org. The site offers information for all citizens on issues such as consumer debt, home equity loans, retirement plans and college savings plans.

But Gallagher said he was particularly concerned about college students, especially those who drop out for financial reasons.

"More students drop out of school because of credit card debt than because of bad grades," he said. "That really concerns me."

Aggressive solicitation for credit cards to college students also concerns public interest research groups across the country.

"Different universities and colleges have different regulations about what they allow on campus in terms of credit card solicitation," said Mark Ferrulo, director of Florida Public Interest Research Group in Tallahassee. "We definitely have concerns. We don't have current initiatives, but Florida does have a serious problem."

Manatee Community College, New College of Florida and University of South Florida do not allow credit card companies to solicit on their campuses. Credit card companies may not set up tables, or provide incentives to student organizations, to recruit new customers.

Even so, college students are offered credit cards through the mail.

"If it's legal mail, we have to pass it on," said Mark Blaweiss, dean of students at New College. "So, knowing they receive this stuff, we talk to them about how to stay out of debt trouble."

As part of New College orientation, students and parents receive information about credit cards and other financial issues of concern to students. If a student did accumulate a large credit card debt and sought counseling, Blaweiss said New College would turn to its network of New College alumni who are lawyers or bankers to help the student.

University of South Florida in Tampa offers a two-credit course on college life that includes a section on personal finance management and credit cards, said Michelle Carlyon, spokeswoman for USF.

MCC also provides information about financial responsibility to its new students, offers counseling, and has invited speakers to campus to discuss consumer credit issues, including debt accumulation, said Linda Harrington, MCC spokeswoman.

One exception to its credit card solicitation policy is USF's "affinity card," a credit card with the university logo made available through the alumni association, Carlyon said. But, students can opt out of having their name on a list for affinity card offers, and the offers are allowed only once each semester.

Yourmoneyyourlife.org is privately funded by the Allstate Foundation and is supported by the Florida Department of Financial Services, Florida Council on Economic Education, Florida Insurance Council, Florida Bankers Association and the Florida Credit Union League.

For information on consumer credit cards, visit The Florida Jump$tart Coalition for Personal Financial Literacy online at www.FLjumpstart.org, or www.pirg.org/student/consumer/credit98.

WWW.FLJUMPSTART.ORG

Florida Jump$tart Coalition for Personal Financial Literacy

WWW.PIRG.ORG/STUDENT/ CONSUMER/CREDIT98 Results of a PIRG survey on college students and credit cards

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