RHODE ISLAND – Over the course of the past year, colleges, universities, and their alumni associations earned almost $1.5 million from credit card companies thanks to the sales of mailing lists of both current and former students.
While the CARD act made it harder to offer cards to undergraduates, many credit card companies have found ways around that, and the agreements companies make with colleges and their alumni associations may prove problematic for young students.
One good example of big payouts rests with Brown University. They make $350,000 every year just for selling information about graduates of the school. The more people who sign up, the more money the alumni association collects. Many experts have said that marketing cards those who have just graduated with student loan debit is only opening up the potential for additional financial problems in the future for graduates. Others, however, suggest it’s a great way for alumni associations to make money and market the college at the same time.