FAQ

Many college and university alumni associations have affinity credit card programs that give graduates the option of using a credit card bearing the name and logo of their alma mater. To offer an affinity card, the alumni association engages in a contractual agreement with a bank that gives the bank the right to market the card to individuals who have a close relationship with an institution, such as alumni. The Michigan Tech Alumni Associations allows Bank of America to simply share information about affinity credit card programs with alumni, who can then compare affinity card options with other cards and make an informed choice.

First and foremost, they strengthen their relationships with alumni by offering them a valuable service. In addition, Bank of America pays the association a "royalty" fee for use of the institution's name and logo. The association also receives financial benefits when individuals use the affinity credit card. The financial benefits provide resources the institution would not otherwise have to support programs for students and alumni.

Yes. The opportunity to support the institution or its alumni association is one of the primary reasons graduates select and use affinity cards over other credit cards. Graduates also use the cards to demonstrate their pride in their alma maters.

There is nothing inherently wrong with alumni associations' affinity credit card programs, which are similar to affinity card programs offered by many other nonprofit organizations, and there has been no evidence of related impropriety. In fact, these programs benefit graduates, associations and institutions by generating resources to serve alumni and students. Indeed, the revenues generated through these programs can free up other resources at the university to enhance educational access and other priorities.

Recent controversies regarding the relationship between student financial aid offices and "preferred" private lenders have led lawmakers and regulators to examine other relationships between colleges and universities and the companies that do business with their institutions.

Government officials want to make sure that colleges and universities are not engaged in questionable practices or potential conflicts of interest.
Policymakers are also concerned about the level of student credit card debt and whether colleges are encouraging students to take on more debt than necessary through their affinity credit card programs.

No. While students are certainly able to apply for the card, the Michigan Tech Alumni Association does not actively promote its affinity credit card to students at this time. The Association generally focuses their affinity program marketing on graduates rather than current students.