By Elaine Fabian
The Daily Iowan (U. Iowa)
(U-WIRE) IOWA CITY, Iowa-Students’ college years can provide opportunities to develop credit for the years ahead, but the U.S. House of Representatives is reviewing a bipartisan bill that may limit college students’ credit growth.
Rep. Louise McIntosh Slaughter, D-N.Y., and Rep. John Duncan Jr., R-Tenn., introduced a bill to keep creditors from taking advantage of young, full-time college students.
If approved, the federal bill would restrict the credit limit of students under 21 unless parents agree to assume joint liability. In addition, such students would be allowed to have only one credit card at a time. Students without sources of income would not be able to get credit cards, regardless of a parents’ willingness to co-sign.
Opponents of the bill argue that the government shouldn’t have the right to limit students’ credit.
Under the bill, college students under 21 would not be able to earn credit limits that exceed 20 percent of their annual gross incomes unless parents co-sign.