Every year, college students are inundated with offers for new credit cards, but last year, many card issuing companies paid fourteen percent less to colleges to allow them to market on campus.
In 2010, just $73 million was paid out to colleges via marketing agreements while $85 million was paid out in 2009. What’s more, though, is that a Federal Reserve report had the number of colleges involved in this kind of marketing down by four percent.
The likely culprit for these changes is the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) of 2009. Passed to ensure strong guidelines were in place for the kinds of marketing companies could do on college campuses, fewer students seem to be reached by these companies now.
Credit card companies manage these agreements by paying colleges part of what students charge on the cards they take out. As popular as these agreements are, revenues are down throughout the US, and especially in Dayton.