Citizen Agenda: A Report For Members Of OSPIRG
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The Truth About Credit

VISA or FEESA? Countering Credit Card Marketing
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CREDIT CARD FEES—Credit card companies aggressively market their product to college students. Some students are marketing an alternative message: buyer beware.
As college students headed back to school in the fall, OSPIRG student chapters worked together with PIRG chapters across the nation to launch a major new campaign, the Truth About Credit, to expose the deceptive practices used to market credit cards to college students at on-campus tables.

The goal of the campaign is to urge colleges to adopt strong credit card marketing principles and to use counter-marketing educational tables of our own to teach students about safe credit card use.

Over half of Americans carry total credit card debt averaging $10,000 each and totaling over $800 billion. Problematic credit card company practices, including high late fees imposed unfairly, as well as penalty interest rates of 35 percent APR or more, have hurt consumers.

In particular, college students are graduating with too much credit card debt—close to $4,000 on average. The credit card industry vigorously markets to college students as valuable new customers on campus. All too often, the deals they offer take advantage of consumers.

Higher Education

Making College More Affordable

In September, Congress passed the College Cost Reduction and Access Act, touted as the most meaningful higher education reform in more than 15 years, addressing the dual financial challenges of access and affordability that face college students.

The act provides billions of dollars a year in additional grant aid to low-income students and includes reforms to help lower student loan debt. The investment in education is paid for by lowering subsidies to private banks.

“The bill trims excessive subsidies that benefit a handful of banks,” said PIRG advocate Luke Swarthout. “The bipartisan votes for this legislation are testament to the broad support for helping students and families pay for college.”

Health Care

Oregon’s Health Care Reform Plan Of Action

A statewide effort to establish quality affordable healthcare for all Oregonians was launched with the first official meeting of the newly-appointed Oregon Health Fund Board in October 2007.

“Oregon has an opportunity to enact real reform to cut healthcare costs and improve quality,” said Laura Etherton, OSPIRG advocate, who serves on the Board’s Finance Committee. “Consumers are paying too much and getting less and less under the existing system.”

The effort was put into motion through passage of The Healthy Oregon Act. Between now and the fall, Oregonians will be meeting to discuss the specifics of how to make sure everyone has access to affordable, quality health care. The resulting proposal may become a bill that will go before the Legislature in 2009.

Higher Education

Textbooks Law Takes Effect

Students and parents have stronger tools in the fight for affordable textbooks, thanks to an OSPIRG-backed law that went into effect on Jan. 1.

Under the new law, publishers will need to be clearer about prices and options. And they’ll have to give faculty the option of only ordering the books they want students to buy, as opposed to “bundling” textbooks together with pricey CDs and workbooks they don’t need for the class.

Textbook costs increased four times the rate of inflation between 1994 and 2003. Research conducted by the OSPIRG student chapters, and confirmed by a survey by the Oregon Student Association, found that the average Oregon student spends $900 each year on textbooks.

OSPIRG
Citizen Agenda
Winter 2008
Vol. 25, No. 1


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Credit Scams
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