Colleges Profit off Student Debt
Colleges across the country are raking in millions by giving credit card companies student names and special access to the student body.
An investigation by the Huffington Post Investigative Fund found that although some of the credit card industry’s practices are being halted by the new Credit Card Accountability, Responsibility and Disclosure Act (CARD Act), they can still set up “affinity” contracts with schools.
These contracts grant card marketers lists of student names, rights to market at campus events and the right to use the school’s logo, implying the school played some role in negotiating the terms of credit cards companies offer to students. In some cases, schools are paid more if students keep a credit card for at least 90 days, make purchases on the card or carry a balance.
While the Investigative Fund was unable to determine how many of the nation’s colleges and universities have these contracts, at least 800 do, mostly with Bank of America.
More from the Huffington Post Investigative Fund