University profiting off student credit cards

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fffresh
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University profiting off student credit cards

Postby fffresh » Fri Jan 02, 2009 11:40 am

The New York Times reports that there is a $8.4 million dollar, 7 year contract a bank has with Michigan State. The schools earns more money the more students sign up for their credit cards and they can profit additionally if the students end up with an interest-bearing balance on their credit cards. I would consider this a conflict of interest. Non-profit schools and credit card companies should not be doing business with each other.

http://www.nytimes.com/2009/01/01/business/01student.html?_r=1&8dpc


magyar1045
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Postby magyar1045 » Fri Jan 02, 2009 2:59 pm

They should really prohibit banks/credit card companies peddling their crap on college campuses.
Sooner or later they'll probably start peddling them at High School graduation ceremonies.

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fffresh
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Postby fffresh » Sun Jan 04, 2009 1:39 pm

The sad truth is that with high schools facing massive budget deficits, they may actually resort to doing that in an attempt to makeup the financial shortfall.

I would advocate a test, similar to the multiple choice driving test, that all persons must take and pass before being granted access to credit. This would tremendously help some naive students who do not realize the mistakes they are making.

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Postby magyar1045 » Sun Jan 04, 2009 3:32 pm

fffresh wrote:The sad truth is that with high schools facing massive budget deficits, they may actually resort to doing that in an attempt to makeup the financial shortfall.

I would advocate a test, similar to the multiple choice driving test, that all persons must take and pass before being granted access to credit. This would tremendously help some naive students who do not realize the mistakes they are making.


A test for credit??? First they should pass basic math, and learn how to balance a check book/register.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Jan 05, 2009 9:43 pm

You mean a basic knowledge test? As in it would test them about their financial knowledge?

That could be a plus but yes they do need to know how to do things like balance a checkbook too. The test would have to things like that too.
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Postby goober » Tue Jan 06, 2009 12:20 am

i remember during freshman orientation they had tents and stands set up by banks. but they were pushing checking accounts more than anything else i remember. some of the promos were good like $100 to signup a checking account. i don't remember the credit card offers but i'm sure they were there.

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Postby magyar1045 » Tue Jan 06, 2009 8:38 am

And the also remember that some of the banks also sponsor college football games-bowls. And some pro teams are in stadiums that are plastered with bank propaganda signs and even named after them. I think the Baltimore Orioles (baseball) park is named BankOne Park.

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Postby fffresh » Tue Jan 06, 2009 10:11 pm

magyar1045 wrote:A test for credit??? First they should pass basic math, and learn how to balance a check book/register.


Absolutely. I believe tasks such as those should be incorporated in the tests.



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