Schools still rely heavily on credit card deals

While many critics have said that agreements between credit card issuers and institutions of higher learning may not be helpful for students, recent studies have found that their schools benefit massively from the deals.

Deals between credit card lenders and universities, alumni associations or fraternities and sororities made these organizations a total of $73.3 million in 2010, according to a report from USA Today. And while that’s down from the $84.5 million seen in 2009, the extra revenues often helps to fund school or group activities in some way.

“It is a big chunk of what we do,” Roger Williams, executive director of the Penn State Alumni Association, told the newspaper. “It basically pays for approximately (20 to 25 percent) of our operating budget in a given year.”

The drop in these revenues between 2009 and 2010 can likely be attributed to new laws that made it more difficult for college students to obtain credit cards of their own. Now, these young adults need an adult co-signer or adequate proof of their own income to sign up for a new account.