College students face rising credit card debt risks

A recent WalletHub study indicates that 85% of college students possess credit cards, with an average balance of $2,100. Notably, 20% of students are carrying balances exceeding $5,000.

Financial experts warn that students often lack the experience to manage significant credit lines, which can lead to rapid debt accumulation. Data shows that the percentage of students paying off their credit card balances in full every month has decreased by 12.5% since 2018.

To mitigate aggressive marketing and predatory lending, federal protections such as the 2009 CARD Act are in place. These regulations prohibit issuing cards to individuals under 21 without a co-signer—unless they can prove independent ability to pay—and require parental approval for credit line increases.