The Credit Card & College Link

[jeffrey]

When Ryan T. Muneio was tailgating with his parents at a Michigan State football game this fall, he noticed a big tent emblazoned with a Bank of America logo. Inside, bank representatives were offering free T-shirts and other merchandise to those who applied for credit cards and other banking products.

A Fifth Third Bank display offered bottles of water, tuition raffles and a bicycle as an inducement to get incoming freshmen at Michigan State University to open credit card and other accounts.

“They did a good job,” Mr. Muneio, 21 and a junior at Michigan State, said of the tactic. “It was good advertising.”

Bank of America’s relationship with the university extends well beyond marketing at sports events. The bank has an $8.4 million, seven-year contract with Michigan State giving it access to students’ names and addresses and use of the university’s logo. The more students who take the banks’ credit cards, the more money the university gets. Under certain circumstances, Michigan State even stands to receive more money if students carry a balance on these cards...

http://www.nytimes.com/2009/01/01/bu...1student.html#

[disneysteve]

This should be outlawed. I've posted many times that back in college, my friends and I used to go around and apply for credit cards all the time to get the free items. The difference then was that they wouldn't approve you for a card if you had no income and no money. Now, they'll give anyone with a pulse a credit card. The rules need to change. You shouldn't be allowed to borrow money from a credit card or anywhere else unless you can show proof of your ability to repay it.

[SacredFaerie]

Very true Steve. Very very true.