If you've heard the argument that a credit card helps build a student's credit record and that they are more difficult to get later on, ignore it. The truth is student loans are a much safer way to build a credit history. Their interest is tax deductible (and easy to calculate on a tax return) and they can be deferred in times of economic hardship. Try that the next time a MasterCard (MA) offers your college student a Nerf basketball.
