WASHINGTON, July 31, 2008
Congress Takes Aim At Pricey Colleges
New Legislation Would Include Watch List For Institutions That Impose Sharp Tuition Increases
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A vote could come within days on a wide-ranging bill designed to address concerns about rising college costs.
Under the legislation, students could get earlier warning about which textbooks they'll need for class so they have more time to shop around. And professors would get more information on prices when they're choosing which books to assign.
A new government watch list could also use the threat of negative publicity to keep colleges from imposing severe tuition increases.
The bill takes mostly small and midsize steps. It avoids bigger steps like price controls in the hope more transparency will lead to lower costs.
Meanwhile, as students head off to campus in the next few weeks they can expect to face financial challenges that extend beyond tuition, fees and books.
College students usually find themselves bombarded with offers from credit card companies when they hit campus. And knowing ahead of time how to navigate those and other financial waters is vital, CBS Early Show money maven Ray Martin says.
Financial Preparation for College-bound Students and Their Parents
It's estimated that 17 million students will arrive at college campuses across the nation this fall. Many will be the target of credit card marketing campaigns designed to get them to sign up for credit cards endorsed by their college, and many students will take lenders up on their offers.
According to a national survey on the usage of credit cards by college students conducted by the Nellie Mae Corporation, about 42 percent of college freshman have a credit card and, by the time they reach their final year of college, 91 percent have at least one credit card -- and the average number of credit cards is four-per-student. College students report direct mail solicitation as the primary source for selecting and signing up for a credit card.
Credit Cards on Campus
Should you tell your college student to avoid credit cards altogether? That's just not practical advice. But it's also not a good idea to obtain a credit card without giving any thought to the consequences of amassing an unmanageable amount of debt and a wrecked credit score.
The learning curve with credit cards is not difficult, but there is little room for trial and error, since making a mistake can have big consequences. Students need to learn to establish and use credit properly and to develop a good credit history before they graduate from college. Often, the first step in this process is getting and responsibly using a credit card. After all, a credit card, when used correctly, can be an important and valuable financial tool. But this can backfire, as having too many credit cards and late payments can result in big fees and ruin your credit score. This can have long-term consequences, such as getting turned down for a car or home loan, or a job. Many employers check credit reports and turn down applicants who have poor credit ratings.
Using Credit Cards Correctly in College
Every student who gets a credit card needs to understand this most basic and essential concept: Each time you use a credit card, you are borrowing money. The credit card company will charge you interest until you pay it back in full. Credit cards never give you more money to spend, they just delay when you have to pay, and can even significantly increase the cost of what you buy when it is charged on your credit card.
Tips for Students Using Credit Cards in College:
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Add a Comment See all 16 Comments
- This Democrat-led Congress is simply a do-nothing, feel-good Congress.
Nancy Pelosi was far too busy writing her self-agrandizing book to notice that she has accomplished nothing since taking office - that book by the way, is being overwhelmingly reviewed as a complete bore and a waste of paper, even by liberal readers.
So will Nancy''s congress accomplish anything meaningful, like dropping the ban on American offshore drilling to help stop our dependancy on foreign oil?
Not as long as the Democrats are in control of things. - Reply to this comment
- I work for a state university that I attended as a student. When I was a student, the state contribution for higher education was pretty good. Tuition was low. Now, there is so little state funding that the state universities have cut just about every expense they can, including not hiring top-of-the-line professors. It is great for some politician to say you can''t raise tuition, but it is another thing to try to run a college with very little money. You get what you pay for.
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- What the statistic dosen''''t tell you is that the top 5% make about 60% of all income if you count capital gains, intrest ect. and only pay about 40% of all taxes.
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And half the country is ok with this thievery called progressive taxation.
As long as the government has you fooled into thinking that taxing the "rich" will solve all the problems, you will ignore that governement''s reckelss spending. They will keep spending and eventually, you, the middle class, will pay. And your kids will pay. And your grandkids will pay.
Stop villifying the rich and start villifying government spending. - Reply to this comment
- Colleges are being expanded at about the same rate as public roads. In an answer to address costs, governments want to raise revenues and in some cases, toll roads.
College prices reflect an open market of supply and demand. Except of course for their tax exemption, subsidies and endowments.
Government doesn''t solve the problems they have and continue to stick their noses where it doesn''t belong.
Drop the tax exemption on colleges. Solve both problems. - Reply to this comment
- Do something about the high price of gasoline, you dumbarse, DO-NOTHING, Dumbocrats!
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- I''m assuming this reference public schools, versus private schools. Perhaps because the tuition is still lower, albeit having sharp increases, and comparative to private schools, the only alternative is to make tuition increases and charge a lot of money for the textbooks at these public schools, which historically attract those who can''t afford a private school. Must everything be discounted to accommodate others? Hasn''t lowering academic standards and entrance tests been enough in accommodation? College isn''t an entitlement, it''s a privilege and with that comes financial responsibility and accountability. It''s the obligation of the parents and student, not the taxpayers to help fund their higher education.
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- Top 1% pay 37% of all taxes.
Posted by dmw1167 at
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This garbage is always on Rush Limbaugh''s web page. What the statistic dosen''t tell you is that the top 5% make about 60% of all income if you count capital gains, intrest ect. and only pay about 40% of all taxes. Poor dumb republican kissup Limbaugh followers cant see the tax burden in this country is being shifted to the middle class. - Reply to this comment
- Butt out, Congress. If you really cared, you would provide more money to the colleges so they would not have to raise tuition. My state had to cut back the amount they gave state colleges so my tuition had to go up to make up the difference. Step up or back off.
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- Far too many colleges exist in the U.S. Even the worst high school graduate can find a college in the nearest large city that will grant him/her admission.
Posted by anon00 at 11:03 AM : Jul 31, 2008
So, you really think the country would be better off with *fewer* educated people ? Seems to me, any education is better than no education. The average American knows shockingly little as it is, and generally has poor critical thinking abilities. - Reply to this comment
- A BA/BS degree today is worth what a high school degree used to be worth. Community colleges are a better alternative for many students today.
As for credit cards, I got each of my sons a card when they left for college and told them the first time they did not pay in full when the bill came due they card would be cut in half. I never had to do that and they are both very savvy with their finances even to this day. - Reply to this comment
- Sorry that law only applies to free enterprise.
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- Have these politicians ever heard of or studied the LAW of supply and demand? Duh.....
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- The Congress is a joke? Right?
There nose is into so many things they off.
If they can not from a Socialist agenda through congress then they will do it a little at a time, chipping away at our life and freedoms. When will congress actually represent freedom.
VOTE THEM ALL OUT. - Reply to this comment
- Three quarters of this article has nothing to do with college costs. Another worthless report from CBS.
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- It''s called serfdom,
When is it that America is going to understand that the hyper-inflation as a result of "tax cuts to the rich" and 100''s of billions spent on a failed War in Iraq causes everything to go up.
This story is no different then what you hear in 3rd world countries. Soon there will be "price controls" because the world is cutting off the credit to America.
Once these University Institutions start to close one, in the end they''re will be only a handfull of State Colleges accross the country where only the rich can afford it.
Everyone else will be a pedestrian selling melons and juices on dirt and pot hole roads or riding around on bicycles hustling for money.
Thx...Ronnie and you Republicans. - Reply to this comment
- makes so much sense lets investagate colleges,congress is nothing but money wasting idiots lets investagate then do nothing. its called the stupiding of american people.
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The road ahead in Afghanistan, and the crucial decision Obama faces.
