The College Debt Trap

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This is a great story that I got a hold of through somebody’s Facebook or Twitter update that talks about the way that colleges benefit from banks who use their resources to encourage students to apply for credit cards. As a recent undergrad who’s been targetted and who’s taken part, I can definitely attest to the reality of college students being targetted. What never occured to me, though, is how the colleges could benefit from it as well. And it hit even closer to home because the intro paragraph, and most of the article, is based right at the alma mater of Michigan State University. An excerpt from the article:

Hundreds of colleges have contracts with lenders. But at a time of rising concern about student debt — and overall consumer debt — the arrangements have sounded alarm bells, and some student groups are starting to push back.

The relationships are reminiscent of those uncovered two years ago between student loan companies and universities. In those, some lenders offered universities an incentive to steer potential borrowers their way.

And the State News is cited, too! I knew my artist JYoung the General (journalist name Jahshua Smith) wrote for ’em last summer, but with the notoriety they have amongst minorities at MSU, who would’ve thought they’d drop a gem like this? Guess they covered Cedar Fest pretty well though.

via NYT