I am in the process of writing a book about students in debt, focusing on the cultural and economic forces that have brought about the current crisis in which vast numbers of young people are starting out their lives loaded down with unmanageable debt. The dream of upward mobility in this country endures despite tuition costs having risen far beyond the reach of middle-class families while, at the same time, the availability of financial aid has declined. Upon graduation, students often find that entry level jobs in their fields come with low salaries and few benefits, and that the cost of housing in desirable urban areas is prohibitively high.
Inevitably, in this climate, students are drawn to rely on credit cards to get them through tough times. The loosely regulated credit industry has seized upon this vulnerable group to profit through high, volatile interest rates, late fees, and early dependence on credit.
I'm interested in how students are managing to survive in this environment, what strategies have proven successful, whether students believe that our educational system is working for the middle-class, what drastic measures some have taken to escape the tyranny of debt. I know from my participation in discussion forums, particuarly the ones at at www.creditboards.com, that some individuals have had success in dealing with their debt head-on by educating themselves about their rights as debtors, negotiating with creditors and sometimes filing for bankruptcy protection.
If you'd like to share your story, please email me at hk@maxedoutgen.com. Interviews can be conducted by email or telephone, or both. All identities will be kept confidential.
Posted by HK at August 10, 2004 10:29 AM | TrackBackI really wish there was a federal law limiting the amount of credit a full time student can obtain with regards to a credit card. Something needs to be done about this situation, I just don't know what.
Posted by: Brandon at August 11, 2004 11:50 PMYes, something needs to be done to prevent credit card companies from offering goods to students. By the time most people discover that these companies are not their friends, it's too late and they're locked into a situation which is very hard to get out of. As consumers, we are not well-organized to bring this concern to our lawmakers, so the credit industry continues to dominate. The only way to make a real impact is to opt out of using credit cards in great enough numbers as to pose a threat to the industry. I don't see this happening anytime soon.
Posted by: HK at August 16, 2004 08:49 AM