These students are not exceptions. In fact, a 1999 report by the Consumer Federation of America found that 20 percent of U.S. undergraduates have $10,000 or more in credit-card debt. That figure does not include student loans.

Eighty percent of parents of University students think their children have either no or one credit card, says Marj Savage, program director in the University’s Office of Student Development, who conducted an informal survey over the Internet with parents in the spring of 2001. In reality, 54.1 percent of University students have from two to six credit cards.

Boynton Health Services determined in a 1998–99 study that student credit-card debt is a growing problem and is linked to depression, binge drinking, tobacco use, and suffering grades. The study reported that 26 percent of University students have more than $1,000 in credit-card debt, and 11.9 percent have more than $3,000.

The University and Lutheran Social Services have been combating this trend since March with a debt-counseling program that teaches students how to develop good credit, handle credit cards responsibly, and fix existing credit-card problems. Students overwhelmed with credit-card debt can receive free financial counseling at Boynton.

"The longer students have credit cards, the more they want to get rid of them," says Darryl Dahlheimer, one of the financial counselors. "We’re not anti-credit; we just want people to use them in a smart way." Dahlheimer says the program can help students lower the interest rates on their cards and negotiate payment plans with creditors.

Eighteen students have used the program so far. "Usually we’re looking at $5,000 to $7,000 [in debt] and in many cases it’s about $3,000," says Karen Lyons, another financial counselor. The program’s counselors insist that thousands of students could benefit from the financial planning and debt-control methods taught during the one-on-one sessions. Boynton plans to boost the program’s publicity around campus this fall.

Barb Benner, a University psychologist, says she sees students working too much to pay off debts, thus isolating themselves from relationships and becoming depressed. "[Students] would have time to actually see their friends if they weren’t supporting the cell phone and the independent apartments. I think it’s pervasive in our culture."

Though debt can be embarrassing, Boynton counselors recommend that students create a repayment plan before debt becomes unmanageable and threatens their credit rating or leads them to file for bankruptcy. "Sometimes the kids can’t even manage it with a debt repayment plan; they’ve gotten in too far," says Lyons. "They have to go to their folks."

In 1998, the University stopped allowing credit-card vendors to set up tables at its events. In addition, students are not permitted to charge tuition or fee payments. But through partnerships with student groups, credit-card vendors can set up student-run tables on campus, offering all sorts of free goodies to entice students to apply.

"I just wanted a free T-shirt," says the student who is $5,000 in debt. "I didn’t even activate the card until six months later."
—Katheryn Howard