Section D·Page 14
The University Daily Kansan
Monday, August 17, 1988
928 Mass. Downtown 843-0611
please pick up all of it.
Students warned about downfalls of establishing credit with plastic
By Michael Martin
Kansan staff writer
Credit cards can cause college students to charge headfirst into debt — a plight that some say is avoidable through budgeting and cautious spending.
At the University of Kansas, the beginning of the semester traditionally brings credit card companies seeking applicants to tables in the Kansas Union and in front of Wesco Hall. Many offer free gifts, such as T-shirts and candy, in exchange for a completed application.
It is part of a strategy to encourage a long, not necessarily cozy, relationship between students and credit card companies, said Jeff Sheets, counseling supervisor for Consumer Credit Counseling in Kansas City, Mo.
"Credit card companies know college students," he said. "If they catch them early, they know they'll use it for a long time."
Students often fall into a pattern of credit-card use. Sheets said.
"Most say their credit card is for emergencies, but that's far from the way they use it. They use it for fun things," he said.
Students contemplating a credit card account should question its necessity, Sheets said.
if you're going to use it for emergencies, then you're going to be fine," he said. "If you don't have enough discipline to do that, then wait until you have your first job and enough income to pay it off."
Students wanting to pay off a credit-card balance should start by sending in two or three times the minimum payment, which often covers only interest charges. Sheets said.
"The best way is to get the credit card out of your hand," he said. "Put the credit card in a block of ice, cut them up, don't add to the balance."
College students constitute 5 to 10 percent of the clientele of Consumer Credit Counseling's Kansas City, Mo., office, which offers budget advice to about 1,000 people per month. Sheets has seen various
"If you're going to use it for emergencies, then you're going to be fine. If you don't have enough discipline to do that, then wait until you have your first job and enough income to pay it off:"
Jeff Sheets
Counseling supervisor for Consumer Credit Counseling in Kansas City, Mo.
effects of credit-card debt, from students unable to rent apartments to recent graduates declaring Chapter 7 bankruptcy.
Simon Peck, Lawrence senior,
has four credit cards and carries a
balance of about $5,000.
He got his first credit card before college while working a full-time job. He was not in debt until he came to the University, when the number of cards he held — along with his debt — increased significantly.
"If you don't have money, it's easy to whip out the credit card and say 'I'll worry about it later,'" Peck said. "I try not to use them anymore, but it's hard."
The Student Organizations and Leadership Development Center gives credit card companies approval to solicit on campus.
The companies must be sponsored by a student organization, such as a fraternity, said Erin Jones, temporary events secretary for the center.
Representatives from Visa, Mastercard International and Citibank, companies that frequently solicit on campus, did not return phone messages requesting comment.
The tables are staffed by members of the sponsoring group, which receives a commission for each completed application. Jones said.
A recent survey showed that student credit-card use is widespread.
Nearly two-thirds of college students held at least one credit card, and one-third received it during freshman year, according to the report, released June 24 by two education groups.
The groups also found that most students paid more than their monthly balances, but cautioned that its findings were based on student reports, not credit-card company records.
The random survey of 750 students was conducted by The Education Resources Institute, a nonprofit organization, and the Institute for Higher Education Policy, which relies on contract work and foundation money.
A survey this year by Nellie Mae,
a student financial-aid organization, found that the average
credit-card debt of undergraduates aged 18 to 25 was $1,879, and for
graduate students was $4,925.
Cash-strapped students can earn blood money
The Associated Press contributed to this report.
Plasma donation is only one option in fund-raising vein
By Darrin Peschka
Kansan staff writer
For many college students, having a job isn't quite enough to keep up with rent, bills and social expenses.
Students often need to find more creative ways to earn money.
Kevin Kelley, Omaha, Neb., senior, has found that donating plasma is a quick and easy way to make ends meet.
Kelley has been donating plasma at NABI Biomedical Center for
three years.
"I donated quite a bit when I was a freshman," Kelley said. "Now I only donate when I absolutely need money."
NABI, 816 W. 24th St., pays donors for plasma, the yellowish liquid portion of the blood.
Through a process known as plasmapheresis, small amounts of blood are drawn from the arm. The plasma is separated from red blood cells through centrifugation, a fast, spinning motion, and the red blood cells are returned to the body.
Kelley said that the actual plasma removal lasts about one hour and that the entire donation process lasts about one-and-a-half to two hours.
According to information provided by NABI, donors are paid
each time they visit the clinic.
Unlike whole blood, which takes about eight weeks to restore,
plasma proteins are replaced by the body in 24 to 48 hours. This allows donors to give plasma twice a week.
Kelley said he was paid $5 for his initial donation and $45 for his second. Now he earns $15 to $20 each visit.
"I don't think it's a good long-term thing," Kelley said. "But it's great when you are waiting for your paycheck and need to stretch your income."
But money from the needle isn't the only option for extra cash.
Tony Duran, manager of Jayhawk Pawn & Jewelry, 1804 W. 6th St., said that students often sold
"I don't think it's a good long-term thing. But it's great when you are waiting for your paycheck and need to stretch your income."
Kevin Kelley
Omaha, Neb., senior
personal items when they needed quick cash.
college students constitute about 90 percent of the store's clientele, he said.
"We get a lot of TVs, VCRs and boom boxes," Duran said. "The best thing I've seen a student bring
in is a full African headdress with a real lion's mane."
Students sell items more frequently around spring and summer breaks, Duran said.
The shop also offers a holding service that allows students to get their items back.
Students can take their items to Jayhawk Pawn & Jewelry and receive money on the spot. The shop then will hold the item until the student returns, when a flat fee depending on the item plus interest is charged.
"Students usually come back from summer vacation with money," Duran said. "This is a way for them to get cash before they go home and still get their stuff back when they return."
All Your Needs All On Campus!
Union Technology Center A complete selection of computers, software and supplies for the academic community... often at special academic pricing! 785-864-5690
KU Bookstores
Student Union Activities
This volunteer organization provides social, cultural, educational and recreational programming for students. Past events include: Day On The Hill featuring Pearl Jam, Spring Break Trips, Movies, Spike Lee Lecture, Homecoming Activities and more! 785-864-3477
Union Food Services
Includes: Union Square, Hawk's Nest, and the Prairie Room. level 3, Kansas Union; The Crimson Cafe, level 2 Burge Union; Wescoe Terrace, Murphy Hall and Visual Arts Snack Bars. Catering and Special Event services are also available. 785-864-4590
Info Counter & Post Office Offers snacks, magazines, plenty of information and is the home of the only United States Post Office on campus. 785-864-4596
Jaybowl Recreation Center Has something for everyone, including: a bowling alley, pool tables, video games, rental of camping equipment and engraving services. 785-864-3545
STUDENT UNION ACTIVITIES
Other Services Include Printing Services Copying Center, an ATM and a full service bank
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