Penn State leads U.S. in earnings from collected credit card royalties

Tim Goral's picture
Monday, January 13, 2014

Penn State University earned more than $2.7 million in fees and royalties in 2011 through a deal helping Bank of America peddle high-interest credit cards to its alumni and students.

That put the university at the very top of the list of the colleges and universities in partnership with the credit industry, according to information that's now available publicly following government overhauls meant to -- among other things -- make it harder for credit card companies to target college students.

Colleges and universities have for years been playing a key role in their students being sucked into the vicious cycle of credit card debt. In exchange for what could amount to millions of dollars in fees and royalties, colleges have opened their campuses to major banks offering credit cards to undergraduates with no jobs, no verifiable income and no credit history.

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