In October of last year, the Federal Reserve issued a report on agreements between credit card issuers and colleges and college alumni organizations. The Credit CARD Act of 2009, credit card issuers were required to submit to the Fed reports on their agreements with colleges, universities and affiliated organizations. These agreements allow issuers to create "affinity" cards, that is credit cards branded for a particular university (Go Heels!) and marketed towards the students and alumni of that university. It is a familiar business model: if you want to get students hooked on debt, start dealing at the playground.
To get inside the schoolyard, cut the principal in on the action. Universities can earn over a million each year with these deals. Check out how much your alma mater has made from deals with credit card issuers at this nifty searchable database.
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