Visa MasterCard Discovery

Colleges make in millions from student credit card agreements

[Sunday, August 7th, 2011]

Despite the CARD Act coming into implementation, colleges still have managed to make millions of dollar by signing up various credit card agreements. Just last year along, eighteen colleges in Tennessee, alumni associations and student groups made revenue of $1.8 million dollar through these agreements. The college makes money each time a student from their institution signs up for a student credit card.

According to reports from the Federal Reserve, $1.4 million of the $1.8 million was made by signing marketing agreements with Chase alone. Gina Stafford, the spokesperson for this university said that the money made by signing these agreements are used by the college to fund scholarship programs and various other alumni projects.

The contract with the University of Tennessee that has been in effect since 1998 is one of the most lucrative pacts in the country. Stafford also mentioned that the contract will expire as of 2012 and Chase does not have any plans of renewing it.

Though the university made a lot of money, the number of new credit card accounts saw a 21% drop in 2010 as compared to 2009. The records from Federal Reserve reveals that in comparison to 10,963 cards that were issued in 2009, only 8,702 cards were issued in 2010.

The number of student credit cards issued via colleges and universities showed a 17% decline nationally. The number of marketing agreements signed between banks and universities also fell by 4%, as per the data in the latest survey published by the Federal Reserve.

About Us | Contact Us | Privacy Policy | Terms of Use | Site Map
Copyright © 2001 - 2017 All Rights Reserved. strives to keep credit card information up to date and accurate. However, all the credit card information is presented without warranty and can be changed by the credit card issuers at any time. Click the "Apply online" button to see the online credit card application and to review current credit card terms and conditions. Note that can be compensated by credit card issuers when the visitors apply for a credit card through the website.

* The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.

Information in these articles is brought to you by Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

Disclosure: Not an access card.