Does UK & UofL profit from/and endorse misuse of student credit cards?

[QUOTE]From NYTimes: ...Michigan State University gets $1.2 million a year but is guaranteed at least $8.4 million over seven years, according to its agreement. The contract calls for a $1 royalty to the university for every new card account that remains open for at least 90 days, $3 for every card whose holder pays an annual fee, and a payment of a half percent of the amount of all retail purchases using the cards. For cards that do not have an annual fee, the bank pays $3 if the holder has a balance at the end of the 12th month after opening an account, a provision that appears to give the university an incentive to get cardholders into debt... http://www.nytimes.com/2009/01/01/business/01student.html?hp=&pagewanted=all# Posted by MillerLite[/QUOTE] i don't understand how it causes card holders to get into debt. Non accountability of the individual is the real problem. it seems to me the only way a card holder gets in debt is if they abuse the card they borrow on. It seems to me that that would apply to any card, and any loan system. Now if you are making a loan for 10 years there is usually colatteral and creit reqd. Now if you are making a loan with a credit line without colatteral it should have terms that give the lender the advantage due to the large risk. These are the things that should be taught in high screwells these days with accountability and what happens to those who do not pay their debts. It really should be treated the same as stealing a loaf of bread off the table from someones home. If you spend someone elses money promising to pay it back and refuse to pay it back there should be a huge penalty.