COLUMBIA --- If the recession weren't hard enough on new college graduates, their credit-card debt could be making it even more difficult for them to land job offers.
Employers commonly look at a job candidate's credit report as an indicator of personal competency.
And for young people who are just entering the job market, that can hurt them, says South Carolina Sen. John Scott.
He has introduced a bill to regulate the activities of credit-card marketers on campus and educate college students about spending.
"These kids don't have jobs," said the Columbia Democrat. "And when they graduate from college, in many cases they can't get jobs because they've already messed up their credit."
Employers checking to see if a job candidate is responsible may obtain a job applicant's credit report if the job-seeker has given written consent.
"I believe a check (mark) on a signed application will usually suffice," said Frank Dorman, spokesman for the Federal Trade Commission.
Mr. Scott's bill, S. 377, directs schools to draft a policy that considers restricting credit- card promoters to a parti-cular place on campus and requiring the school bookstore to give students a brochure about credit-card debt with each purchase.
His bill also calls for campus orientation to include a presentation about debt.
The S.C. Commission on Higher Education is prepar- ing a report for the Senate Education Committee about what the state's colleges and universities already do to control credit-card marketers' activities on campus.
Several schools across the state already limit marketers' access.
Mr. Scott said some college students don't understand the terms and conditions of their new credit cards.
"A person gets a card, and it says it's zero (percent) interest rate," said Mr. Scott.
"Six months later it's 24 percent."
Vermone Coleman, a senior at USC Aiken, agreed.
"I think, honestly, people don't understand that they're going to have to pay it back," she said.
If the bookstore gave students a debt brochure with each purchase, would students read them?
"No," said Ms. Coleman. "They might read it the first time, but if they keep getting it, they're more than likely to throw them in the trash."
During a recent Senate committee meeting, a represenative from Bank of America said there was no opposition to Mr. Scott's bill.
Reach Sarita Chourey at (803) 727-4257 or sarita.chourey@morris.com.
COLLEGE STUDENTS AND CREDIT CARDS
A survey completed last year by the advocacy group U.S. PIRG, the federation of state Public Interest Research Groups, found that:
- 66 percent of students polled had at least one credit card.
- 55 percent said they use their credit cards for "day-to-day-expenses." The same percentage said they use them for books.
- The next highest categories reported were "weekends and pizza" and "emergencies."
- About one-quarter said they paid their college tuition with their credit cards.
-- Morris News Service
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