UT Still Making Money Off Credit Cards, But Not as Much

Eighteen Tennessee colleges, student groups and alumni associations earned $1.8 million last year from agreements allowing credit card companies to market college-themed cards to students and alumni, according to The Tennessean.
Most of that money went to the University of Tennessee, which received $1.4 million through a marketing agreement with Chase, according to Federal Reserve data. The university’s contract, in place since 1998, is the fifth-most-lucrative in the nation.
The money funds scholarships and alumni projects, according to UT spokeswoman Gina Stafford. However, the program is on the decline.
The number of open UT affinity card accounts fell by 21 percent in 2010, and no new accounts were opened in 2010, according to Federal Reserve data. Chase has told UT it won’t renew the contract when it expires in 2012, Stafford said.
Nationally, the number of credit cards issued through colleges and alumni associations fell by 17 percent last year, according to a survey released last week by the Federal Reserve.

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