By the way...The most bad debt that a credit card company can afford (depending on a number of factors) is usually around 5% to 6%. Profit margin on credit cards is considerably lower than you might think. Net margin is usually something like about 3% at most.So, how do they make money on college students? I don't know. There must be some sort of philosophy there, but I don't see, and don't understand it. To me, some one with no job or a part time job is a bad credit risk no matter how you look at it. I wish I knew what the average losses were. I'm sure they track it some how.