Many students turn to credit cards as an easy answer for fast cash. A new Arkansas state law requires universities to provide education to students about credit card solicitation.

Rick Stripling, associate vice president for student affairs, said, “Money is a matter of priority and managing credit debt is a part of that.”

Coming to college for education is a given, but education does not stop there.

“Students are required to attend orientation, and they’ll get a credit card education that is incorporated into the schedule,” Stripling said.

“Out of 40 people who use credit cards successfully, one or two will default and the other 38 to 39 will pay,” he said.

“Students who are accustomed to a certain lifestyle while living at home still want to maintain that standard after coming to college and use credit cards to buy the things they want, without thinking about the consequences to their future,” Stripling said.

“At 25 years of age, what does bankruptcy mean to you?” he said.

Starting this fall, Arkansas State University will comply with the new law restricting credit card solicitation on campus.

Roger Lee, associate dean of student affairs, said, “If the university does face-to-face solicitation at athletic events, the university must provide educational seminars.”

Lee said the university started educational seminars during orientation in August.

“Arkansas State University will be in complete compliance with the new laws and will provide continuing education,” he said.

The Arkansas Legislature passed Act 1328, which details “credit card” means any card, plate or other single credit device that may be used from time to time to obtain credit.

“The law does not apply to mail or handouts,” Lee said.

The law specifies universities, colleges, technical colleges and community colleges located in Arkansas must provide educational seminars on credit cards for students.

The new law specifies it is unlawful to offer gifts or any other promotional incentives to any person under the age of 21 through face-to-face contact in order to entice the person to apply for a credit card on campus.

This means students would have to verify their identity and age to receive gifts.

Dr. Lillie Fears, assistant professor of journalism, said, “It’s a behavioral thing; unless you change the habit, you still have the problem of having credit card overuse. I think education is great, but a lot of young people do not know the reality of plastic money and the entrapment of it.”

Billy Ray, executive director of the Student Activities Board, said, “My advice would be to do the seminars but students need to be responsible by knowing their limits and learning those annual percentage rates.”

Severina Vanagunas, counselor for Consumer Debt Counseling, formerly Consumer Credit Counseling, explained there is no way to clean up negative credit, except time.

She said negative credit shows on your credit report for seven years.

“Do not get a credit card if you do not plan to pay it off at the end of the month,” Vanagunas said. “Read the fine print; it will kill you every time.”

Vanagunas said 30 percent of her clients are students.

“I do not think credit card companies ought to solicit on campuses because there is not enough credit card education,” she said. “That is why the law was passed.”

Vanagunas said Consumer Debt Counseling will work with students to develop a budget for spending.

“We work with students who see signs of falling behind on credit card payments,” she said. “Don’t be embarrassed to come in. We will work with you.

“Credit cards are not a bad thing, if you know how to use them. It’s the misuse that gets students into trouble,” Vanagunas said.

Consumer Debt Counseling is located at on Race Street in Jonesboro.

Lee said, “Decisions about credit card issues can be around for along time and ASU will comply with the law by providing students with financial management skills to help understand them.”

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