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For Immediate Release Contact: Patrick Harris Director of Media Relations Ohio Credit Union League pharris@ohiocul.org 800-486-2917

College Students vs. College Debt – A Growing Rivalry

Students Urged to ‘Beat Debt’;
Credit Cards, Students Loans Average More Than $26,000 in Debt

Columbus, Ohio (November 20, 2009) – A rivalry on the gridiron is less appealing if the results heavily favor one side.  The same is true in the game of life, and credit card and student loan debt are running up the score before students even enter the playing field.  Ohio credit unions are hosting “Beat Debt Day” on the campus of The Ohio State University to bring awareness to rising debt among students, share tips on how to manage debt, and familiarize students with available financial counseling resources.

According to Sallie Mae, the average college undergraduate carries more than $3,000 in credit card debt, the highest level since 1998.  Similarly, the average student loan debt among graduating seniors has risen to its highest rate in 10 years to $23,186. 

“I’ve seen first-hand how quickly a student can amass a large amount of debt,” said Tammy Jones, Chief Operations Officer of Credit Union of Ohio, whose field of membership includes students from The Ohio State University.  “We want parents and students to see how easily debt can accumulate, but at the same time, understand how to manage it and utilize resources to prepare them for important financial decisions.”

The study showed the further along in their college career, the greater the amount of credit card debt students incur. Most college seniors with at least one credit card graduated with an average of $4,138 in card debt, up 44% from 2004.  Student loan debt accumulates as well.  Among graduating four-year undergraduate students who applied for federal student aid, 86.3% borrowed to pay for their education and the average cumulative debt was $24,651.

With so few able to avoid mounting debt while pursuing an education, credit unions are reminding students about the best ways to manage debt during and after graduation.

For credit cards:

• Avoid credit cards when possible.  However, if you must use a credit card, shop around for the best deal.

• Know your APR and all fees associated with your credit cards.  Fees include late fees, annual fees, and overdraft fees, among others.

• Know when your payment is due, how it is calculated, and the details behind your payment cycle.                                                          

For student loans:

• Know your loans:  Keep track of the lender, balance, and repayment status for each of your loans.

• Know your grace period: Different loans have different grace periods.

• Lower your principal:  By paying more than your required monthly payment, you can reduce the amount of interest you pay.

Graduate student and university professor Jodi Letkiewicz, who addressed students during Beat Debt Day, stressed the importance of keeping on top of finances.  “I plead to students listening today - - take your financial matters serious, starting right now,” said Letkiewicz.  “Utilize resources available to you here at the university, and understand and manage your current debt load.  Doing so can pay huge dividends down the road.”

Undergraduate Student Government President Ben Anthony opened the event by stressing to his fellow students the importance of managing debt.  Students also played the Beat Debt Game Show, where participants answered questions about debt to earn time in a cash grab booth.

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The Ohio Credit Union League, with offices in Columbus, is a state trade association representing 402 credit unions. Credit unions are not-for-profit financial institutions owned and democratically-controlled by their members. Ohio credit unions provide savings, loans, and other consumer financial services to their 2.66 million members. To learn more, visit www.OhioCreditUnions.org.