Does the Obama Relief Fund Really Helps College Students?

College students are among the major demographicsThe Obama Debt Relief Act mandates that in further
that are fazed credit card debt. But before you blamepreventing the rise of debt incurred by students, credit
it on misuse, studies have shown that school expensescard companies are prohibited to issue credit to people
such as tuition, school materials, and other costsunder the age of 21 if students apply without their
increase as a college student progresses. Accordingparents' permission or verification of their ability to pay.
to Edmund Mierzwinski, consumer program director forThe Obama Debt Relief Act also provides financial
the U.S. Public Interest Research Group, ""Students arerelief and grants to university students. As more
carrying more debt on credit cards, and more studentsparents have lost their jobs and are struggling to find
are paying for education on with credit."alternative sources of income, more students are now
In response to such important matter, the Obama Debtqualified for debt assistance from the government.
Relief Act has included the plight of college students inWhile this debt assistance from the government may
its efforts to greatly reduce the debt of the Americannot be enough to fully free college students from their
people.debts, it certainly has provided them an alternative
In a recent study conducted by Sallie Mae, asource of cash to continue their academic progress.
college-financing company, it is revealed that in 2008,There are still other options that could help students
college seniors with at least one card have anclear their name from credit card debts such as the
average $4,138 of unpaid credit. In contrast, collegeFederal Student Loan, which is a debt relief from the
freshmen have an average debt of $2,038. The studygovernment, or they could apply for Debt Forgiveness.
also revealed that factors such as the bad economySome options may differ in their approach but they
and the rising costs of college tuition are critical to theare all designed to help college students become
rising credit card debts of students.financially free from their debts.