The survey by USA Today also reveals that colleges earn up to millions of dollars every year by allowing banks to advertise their services on campus, and highlights that hundreds of colleges partner with banks in order to offer co-branded credit cards to their students. The findings will inflame concern that it is becoming too easy for students to borrow money that compounds already large student debts.
According to a report on the Statesman Journal’s website, even when colleges ban credit card companies from campuses, the lenders simply set up their stalls over the road from the campus. The Statesman Journal also highlights the practice of credit card companies offering free pizza or sandwiches to students in order to sell cards.
Credit card companies are eager to target college students in order to tap into their supposedly larger lifetime earnings. Lenders look to build a relationship with students to generate later life revenues from services such as mortgages and car loans.
