As the world becomes more consumer-oriented and advertising remains ubiquitous, many questions about companies' marketing ethics have arisen. Many advertisers, always looking for new ways to promote their products, set their sights on college campuses.
With recent decreases in university endowments and students' increasing need for extra spending money, it has become mutually profitable for banks to partner with colleges: the banks have free access to students — a very lucrative market — and colleges earn a profit at a time when public funding is extremely limited. But such practices raise questions as to whether these partnerships help or hurt the students.
Entering college, many students have never experienced the concept of spending beyond their means. Although a credit card may initially be used only as a last resort, they can quickly become the primary method of payment for students with lots to buy and little money to spend.
Sophomore Charlie Finn said that he feels that the benefits of the partnering of banks and universities outweigh the consequences. "Anything we can do to help out our banks at this time [is] a good thing," he said.
Finn added that students should know how to manage their money and not be susceptible to excessive spending that may leave them in debt. "If you go to Tufts you should know how to manage your money," Finn said.
According to Tufts Community Union (TCU) Senator Sam Wallis, a sophomore, the university should have some obligation to educate students about money management. "The university does have [the] responsibility ... of teaching students how to manage their money and how to know the pitfalls of providing their basic information ... There are currently no classes that do that," Wallis said.
He added, "If people know the pitfalls, then it's not a problem to have credit cards, but if people don't know what they're getting into, [it can be]."
Students have become remarkably dependent on credit cards in recent years. According to a survey conducted by the United States Public Interest Research Groups, of more than 1,500 college students surveyed, two-thirds had at least one credit card, and seniors with balances had an average debt on $2,623 on their cards.
Sophomore Rosanna Xia thinks many unexpected expenses arise for college students, making it difficult to avoid using credit cards. "Entering college … your sense of designer labels and fashion changes, and everything does cost a lot more," she said. "You do have to buy a lot more food on your own, and as you get older you have to pay for groceries and you realize how much food costs. Also, I think the amount of coffee and alcohol that we consume is a huge source of where we spend
our money."
Debt is becoming even more of a problem in recent years, as the unsteady job market leaves little assurance for students hoping to relieve themselves of unpaid loans and credit card bills after leaving college. Many students have criticized colleges for encouraging behavior that will leave students owing more than they have.
One extreme case is Michigan State University. The university has an $8.4 million, seven-year contract with Bank of America which gives the bank access to students' names and addresses and use of the university's logo. Students who sign up for cards in order to obtain a free blanket or to be able to buy their textbooks likely do not realize that the university is profiting from the contract.
In some cases, the university actually benefits more if students carry balances on their cards. Often, colleges distance themselves from these contracts by only allowing alumni associations to work directly with the banks. The universities, however, provide alumni groups with lists of current students' names, addresses and telephone numbers to be passed on to banks.
Although Xia thinks students should be responsible enough to manage their finances, she said universities need to respect the fact that young students may not understand what they are getting themselves into when signing away information.
"Students are completely responsible for their own credit. We're entering college as 18-year-olds; we should know how to manage our money and how to not exceed credit card limits," Xia said. "[But] I don't think it's okay [to give out student information] unless the university makes the students fully aware of [the commitments] ... It's not fair because a lot of students are coming in, and it's the first time they have to make decisions like this. They're not aware of how much their privacy is worth. Colleges are supposed to help students enter the real world, and this isn't something they should be exploiting."
Some outraged students have created groups on campuses to discourage their peers from blindly accepting credit card offers without understanding the potential dangers and consequences of doing so.
At Arizona State University, students set up a table last spring to make students aware of the connections between the university and credit card companies, and to encourage students to support limits on marketing on campus. Many politicians in Washington have also spoken out against these agreements.
Although many universities are guilty of sharing information with banks, Tufts does not seem to fall into this category. Director of Public Relations Kim Thurler said that the university keeps student information private. "The university does not ever provide student names or contact information to banks or other vendors," Thurler told the Daily in an e-mail.
Thurler explained that although Tufts does some business with Bank of America, the bank does not receive special treatment from the university. "Any bank can apply to the Office of Campus Life to market its account services on campus," Thurler said. "Banks pay a fee to set up a table, either inside or outside the [campus center] ... Most banks choose to come only at the beginning of the semester, but some will solicit new accounts at other times ... A variety of banks have marketed at Tufts in recent years, including Bank of America, Central Bank, Citizens Bank, Citibank, Salem 5 and Sovereign."
Currently, the Tufts campus has two ATMs: a Bank of America ATM in the campus center and a Citizens Bank ATM in Dowling Hall. Although some students may choose to join Bank of America simply because it is convenient to have an ATM nearby, Thurler explained that Tufts does not profit from allowing these banks to have machines on campus.
"Our current practice is for Walnut Hill Properties, the Tufts entity that manages property that the university owns and leases out, to issue a request for proposals for banks to provide ATM services," Thurler said. "The leasing fees paid to Tufts are nominal and cover the cost of associated expenses, such as electricity and cleaning."
Thurler added that Tufts' facilities are not necessarily alluring to banks for profitability.
"I understand that banks typically want to locate ATMs in locations with 24-hour accessibility by the public," she said. "Tufts does not fit that profile, so bank interest in serving this campus is modest."
