Credit Card Companies Should Not Be on Campus Marketing to College Students

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Category: Philosophy and Psychology

Date Submitted: 05/07/2012 08:43 PM

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Credit card companies should not be on campus marketing to college students

Credit card companies and college students remind me of two fables, the two that come to mind are “The Three Little Pigs” and “Little Red Riding Hood.” In other words, these creditors prey on the weak and unprepared college student. Banks are paying millions of dollars to college institutions to market to students and their faculty. Both Universities and creditors need to leave these young, inexperienced college students alone because in the end, all a student is left with, “is another loan.”

According to (Protess & Neumann, 2010) , many universities and alumni association receive kickbacks for sharing student’s personal information. These schools sell students name, address, and phone numbers to the banks for a huge fee. In addition, schools can make $1 off any student who holds a card for 90 days or more and up to $3 if they carry a balance. Many schools even receive a percentage of all retail purchases. There are many other perks to the colleges such as if the school markets the credit card themselves to students, they stand to make up to $60 for each card opened. Schools do not deny they benefit from the soliciting of credit cards; in fact some colleges say according to (Protess & Neumann, 2010) , the money made from agreements with the banks “helps them plug holes in budget shortfalls and shrinking endowments. Some say they use the money to grant more scholarships to students. Some colleges and alumni organizations also argue that students need to learn fiscal responsibility--and how better to do that than by having a credit card?” (Banks paying colleges for students who rack up credit card debt. 16th paragraph)

Jerry Sigler, chief financial officer of the alumni association of UM states according to (Protess & Neumann, 2010) "Managing credit is as much a part of education and maturation as anything else going on campus” he said. "Credit isn't bad, it's a reality." (Banks...