The governor of New York is investigating credit card marketing practices that target college students. New York Attorney General Andrew Cuomo has asked that all colleges and universities in the state “submit any exclusive contracts they currently have with credit and debit card companies so that his office can examine them for problematic marketing practices,” according to a statement. The attorney general also asked schools to adopt policies that would help their students avoid credit card debt.

Burdened by credit card debt

“Today’s students are facing a growing mountain of debt that can burden them long after graduation,” Cuomo said. “As a new school year begins, we want to make sure that colleges and universities are doing all that they can to help students avoid financial dangers. Especially in this difficult economy, schools must ensure that credit card companies are not engaging in deceptive marketing practices and jeopardizing the futures of their students.”

Among the questionable marketing practices:

  • Some schools release student contact information (without consent) to credit card marketers
  • Credit card firms pay schools to have the exclusive right to market to students
  • Some schools have deals to get a percentage of finance charges from certain accounts

Students need help with debt

Credit card debt among college students has steadily risen, making it difficult for graduating students to pay other bills and expenses. Many students have found themselves unable to find debt solutions to fix their finances and have turned to bankruptcy. The average college student graduates with almost $4,100 in credit card debt; that’s in addition to about $20,000 in student loan debt for four-year college students.

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