College Student Credit Card Protection Act

H.R. 1208, the College Student Credit Card Protection Act, proposes new regulations on how credit card companies issue debt to full-time college students under the age of 21. The bill would limit the amount of credit extended to these students based on a specific formula unless a parent or guardian agrees to be jointly responsible for the debt. Additionally, it would prohibit credit card companies from opening new accounts for students who have no income and already possess at least one credit card.

For students and their families, this legislation would require parental consent before a credit limit could be increased on any account where a parent is a co-signer. The practical impact is intended to prevent young adults from accumulating excessive debt early in their financial lives by ensuring they have either the independent income to support a line of credit or the explicit backing of a guardian.