A recent survey by Sallie Mae found that just 49 percent of students between 18 and 20 had at least one credit card last year, down significantly from the 76 percent the year before, according to a report from Harlingen, Texas, television station KGBT. But many teens are still circumventing the intent of the laws by using other methods.
For example, one part of the new regulations for lending states that those under 21can still obtain a credit card if they provide evidence they have “sufficient income” to pay their bills, the report said. However, the law is unclear about what constitutes “sufficient,” or no law saying the figure submitted needs to be in any way verified. Therefore, many lenders are playing fast and loose with qualifications in this regard.
Further, the law requires those who cannot afford a card to have a co-signer over 21, the report said. However, this can be any 21-year-old, not just a parent or guardian.
Studies have shown that the average college student now graduates with several credit cards in their name, and several thousand dollars in debt.