House Proceeding 04-30-09 on Apr 30th, 2009 :: 0:22:30 to 0:26:00
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0:22:15 to 0:22:35( Edit History Discussion )

Louise McIntosh Slaughter: house report 111-92. for what purpose does the gentlewoman from new york rise? ms. slaughter: mr. chairman, i offer an amendment. the chair: the clerk will designate the amendment. the clerk: amendment number 3, printed in house report number 111-92, offered by ms. slaughter of new york. the chair: pursuant to house resolution 379, the gentlelady from new york, ms. slaughter,

0:22:30 to 0:26:00( Edit History Discussion )
Speech By: Louise McIntosh Slaughter

0:22:36 to 0:22:57( Edit History Discussion )

Louise McIntosh Slaughter: and a member opposed will each control five minutes. the chair recognizes the gentlelady from new york. ms. slaughter: thank you, mr. speaker. i rise in strong support of my amendment to protect college students from the hardship of excessive credit card debt and bankruptcy. i am pleased to share my time with congressman duncan of tennessee with whom i have

0:22:58 to 0:23:18( Edit History Discussion )

Louise McIntosh Slaughter: laborefor at least 10 years to try to see this day come. i appreciate him for his constant help and support. according to nellie may, the average undergraduate has 2,200 in credit card debt and that figure jumps to $5,800 for graduate students.

0:23:19 to 0:23:39( Edit History Discussion )

Louise McIntosh Slaughter: according to sallie mae, 84% of undergraduates have at least one credit card, up from 76% in 2004. on average, students have 4.6 credit cards, and half the college students have more than four. which would be fine if the students were able to pay off the credit card debt.

0:23:40 to 0:24:00( Edit History Discussion )

Louise McIntosh Slaughter: only 17% have said that they regularly pay that debt. most of them have parents who simply let it go. a 2005 study, which is very important for us to know, indicated that many university administrators believe that credit card debt leads to a higher dropout rate than their academic failure.

0:24:01 to 0:24:22( Edit History Discussion )

Louise McIntosh Slaughter: i don't think any of us ever expected that in our lifetime that more students would drop out of college because of their credit card debt than because of their academics. indeed the indiana university administrator was quoted in the "chicago tribune" warning incoming freshmen that the school, quote, loses more

0:24:23 to 0:24:44( Edit History Discussion )

Louise McIntosh Slaughter: students to credit card debt than to academic failure, end quote. and we all kw the ramifications of what happens when they become delinquent on their credit card debt. they can ruin their credit card scores and end up paying higher rates on all future loans. and even more seriously, they may be forced to declare

0:24:45 to 0:25:06( Edit History Discussion )

Louise McIntosh Slaughter: bankruptcy and may not have enough credit rating to have credit cards again. over the past 10 years the number of young people filing for bankruptcy has increased. if credit card companies applied the same scrutiny to college students as they do to adults when approving them for credit cards, college students would not be able to maintain the

0:25:07 to 0:25:28( Edit History Discussion )

Louise McIntosh Slaughter: balances that they are incapable of paying. this is not merely smart business practice, it's good public policy. and our amendment will do just that by requiring the credit card companies to take responsibility for their lending practices to reduce the number of young people getting excessive debt and fing for bankruptcy. we will ensure that credit card companies cannot provide

0:25:29 to 0:25:50( Edit History Discussion )

Louise McIntosh Slaughter: students with extravagant limits and require the creditors to obtain a proof of income, income history, and credit history from the students before approving the application. it would also encourage financial responsibility from students by limiting those without income to one credit card and setting a limit by allowing increases over time if

0:25:51 to 0:26:00( Edit History Discussion )

Louise McIntosh Slaughter: prompt payments have been made. credit card can be a useful tool to help students, however it can also be a cardo failure. i urge my colleagues to support this amendment.