As the collegiate school year gets underway, Senator Paul S. Sarbanes (D-MD), Chairman of the Banking, Housing, and Urban Affairs Committee, announced that the full Committee will meet to conduct a hearing on the importance of financial literacy among college students.

Beginning at first-year orientation, many college students receive credit card solicitations and over half acquire their first credit card during their first year of school. However, college students often lack the financial knowledge that is necessary for a smooth entry into the financial system. Consequently, many students mishandle their finances and accrue large amount of credit card debt. The hearing will explore ways to address this problem.

During the hearing, the results of a new random survey of college students at George Mason University in Virginia will show that among sophomores, juniors and seniors, ¾ had "maxed out" on a least one credit card. And the Commonwealth of Kentucky's Treasurer, The Honorable Jonathan Miller, will call on credit card companies to help fund financial literacy programs to help students understand the implications of assuming massive credit card debt.

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