Colleges profit from student credit card borrowing

<p>“Increasingly, colleges are forging agreements with credit card companies, whereby schools profits from student borrowing. It may be good business, but persistent credit card marketing on campus and subsequent heavy use by students is putting many on a fast track to debtors’ prison.”</p>

<p>…</p>

<p>Until recently, the University of Iowa had a deal with Bank of America in which the bank provided the school with $200,000 annually in exchange for students’ local mailing address (six times during the year), e-mail address (four times), local telephone number (twice), and current home address (once). Bank of America also was also allowed to market cards on campus 14 days a year. The level of access doubtlessly contributed to added financial strain to University of Iowa students who already carry some of the highest levels of federal and private student loan debt in the nation. [Note: After the Des Moines Register ran a series of articles calling attention to the arrangement, the University of Iowa renegotiated its deal.]"</p>

<p>These quotes are from a thought-provoking piece on agreements between colleges and credit card companies. I can’t link to it, because it’s from a blog, but googling “swiped into debt” will bring it up.</p>

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I don’t really buy this - if students want to go into debt they’ll be able to easily enough and even without this BofA level of access they’ll likely have an endless stream of CC offers coming to them.</p>

<p>I do have an issue with the college selling the students’ personal info without the explicit permission of the students for this particular purpose (i.e. not a blanket statement).</p>