New Credit Card Laws (2009) And Students

When it comes to debt, credit card companies believe that you're never too young to start accruing it. This is why many of them hand out lines of credit like candy to students, whether they are in high school or college. Two out of three high school students in the United States have credit cards, and have some form of debt, thanks to reckless spending. Start early, spend often, and pay the bank every month, that's the name of the game for many credit card companies.

College Students in Credit Card Debt
However, thanks to the new credit card legislation just recently signed by the president (May 22, 2009), the days of students getting into debt well before they're legally able to earn the money to begin paying it off is over. Or, at the very least, on notice. For students who already have their cards, the legislation will ease the burden the card conveys in return for being able to buy stuff.

However, it is much more important for generations that have yet to sign on the dotted line and collect their plastic key to financial independence.

Late Fees and Interest Spikes
As well as legislation relating to interest fee spikes and late payments (the bane of any credit card owner, no matter their age), there was a clause dealing specifically with student card owners. In short, the clause makes it harder for anyone under the age of twenty-one to get a card. No one under the age of twenty-one can have a credit card unless a parent, legal guardian or spouse is the primary cardholder. Also, the credit limit on such a card cannot be increased without the written permission of said primary cardholder. The only exception to either of these is in the case of a student with proof of their own income.

They can submit proof of regular income earnings and request an exemption to the need for their parents to allow them to have a card.

Before the Law Passed
Before this legislation passed, a student under the age of twenty-one could get their own card without permission, which, of course, invariably led to reckless spending and the growth of debt, especially in the case of freshman college students. Now, a parent or legal guardian can check such before it occurs and keep their student out of trouble. At least until they have some method of paying off their own debts. This should ease the dangers of credit card debt.

Crippling Debt
Keeping credit cards out of the hands of students may seem unfair at first glance, but really, how fair is it to inflict what can rapidly become crippling debt on a student, especially if they have no way pay off credit card debt. In many ways, this is the modern upgrade to the weekly allowance. Credit cards are a way for students to exercise financial independence, but it often results in unpleasant consequences. Now, thanks to the new legislation, parents and legal guardians have a way of curtailing that financial independence without cutting students off from the potential lessons and character building moments entirely.

Trainee Solicitors and Law Students - Things to Be Aware of in 2009

Some trainee solicitors and law students are learning that the UK legal profession no longer offers the solid and reliable legal careers it once did. In fact, the Law Society of England and Wales has recently announced that it is to run a campaign warning students about the risks of pursuing a legal career.

Respected legal publication, The Lawyer, has stated that 7000 people completed the Legal Practice Course in 2008, whereas there are only 6000 training contract places available to graduates in 2009. Add to this the fact that many of the graduates will be competing for trainee solicitor jobs in commercial city law firms as opposed to high street firms and the competition for places is often much greater.

Furthermore, many firms are cutting the number of training contract places they are offering whilst they try to weather the current recession.

Some firms are even asking students to defer the training contract places they have already been offered which obviously reduces the number of contracts available for students in following years. The problem, therefore, may well get worse before it gets better.

As well as highlighting the job shortages, the Law Society is also seeking to ensure that students are aware of the cost of a legal training. The cost of the Legal Practice Course averages around £10,000 and it is not uncommon for law students to finish their studies with debts of around £30,000 or more.

If this wasn't bad enough, the job market for newly qualified solicitors is equally unsettled. Young lawyers are often the first to go when a firm decides that job cuts are necessary. This creates a surplus of newly qualified solicitors in the market place and many have to take lesser positions such as paralegal or legal clerk and wait for the market to improve.

Coupled with the difficulties of the current job markets and the cost of legal education is the ongoing question of social mobility.

A recent report, commissioned by Alan Milburn, specifically targeted the legal profession with a request to address the question of students from poorer backgrounds being given a fair opportunity to enter the legal profession. A criticism from some quarters is that entry into the legal profession is not a level playing field and that those from better backgrounds have the advantage over those from poorer backgrounds.

So, it's an uncertain time at the moment for many law students who are hoping to enter the legal profession. Of course, many will make it and will go on to have successful legal careers. However, the Law Society wants to engage with those who might not be as successful and ensure they are aware of the risks of pursing such a career.

For all those thinking about doing so, my advice would be to ensure they have fully researched the path they plan to follow and don't leave anything to chance. They should also get some legal work experience at an early stage in order to set themselves apart from the competition when it comes to applying for training contracts.