Page 23 - Payne Research Center ~ Money Matters

P A YN E C E N T E R . OR G
A subset of students indicated that they already have a payday loan (.6%) or would get a loan from a payday lender or title company if they had a $500 emergency (.5%). Although a small number, this finding highlights the potential vulnerability of some students to high-cost loans, which can trap young students in a vicious downward cycle of debt and cause psychological stress, with the link most acute among financially vulnerable populations (Ryu & Fan, 2023).
Although most students use credit responsibly, credit card repayment patterns warrant attention. When students were asked how they pay their monthly credit cards, 56% of responses indicated some form of credit card usage and debt while 44% of responses indicated no lines of credit. Figure 2 provides a detailed breakdown of these responses. Some students reported multiple tendencies when paying credit card debt. In addition, as freshmen and sophomores, 72% of students reported receiving credit card offers, with 24% receiving multiple offers.
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