(Received April 2, 2000)
S9902: Investigate and report on ways to educate students on financial management, including prudent use of credit and controlling credit-card debt.
After research and discussion on this charge the Student Affairs Committee has come up with the following plan:
1. Using a nationwide study done by US PIRG on "The Campus Credit Trap", the committee has decided to adopt 4 of their recommendations:
A. Colleges should review the practice of allowing the firms to pay student groups a fee based on the number of applications filled out. This has been suggested to create an overly aggressive market. A solution may be a flat fee to the organization.
B. Colleges should prohibit credit card companies from offering trinkets to students for filling out applications unless the student has first read a credit card education brochure prepared by either the college or a non-profit credit education organization.
C. Colleges should include credit card and debt education materials in brochures inserted in bookstore shopping bags. The SAC felt this was a key area where educational material could be distributed, because it is a place where the majority of the student body goes to. It is currently the case that several advertisements are included in the bookstores shopping bags including credit card applications.
D. Colleges should review and consider limiting the total number of credit card tables allowed on campus each semester.
As a committee we felt that these recommendations were reasonable, and could make a difference within the student body.
2. The committee also felt that there was a problem with the structure of the way the different campuses deal with credit card vendors. Each college and campus has there own policies on this issue, so they differ greatly. It was decided that a university wide policy on credit card vendors should be established, which would include all campus centers, bookstores, libraries and any other place within each of the campuses and colleges where credit card vendors may set up a table. We believe that this should be handled and overseen by Brian Rose's office, and that these recommendations be implemented immediately and report to the senate at the September 2000 meeting.
Submitted via e-mail by David Singer, SAC Chair, 4/2/2000