Arizona State University is poised to collect millions of dollars over the next decade as part of an exclusive contract with a bank to provide student-ID cards that double as debit cards.

The university joins a growing number of colleges that are using so-called campus debit cards to bring in money at a time when state funding has fallen.

But the agreements also are drawing criticism from a national consumer group that is questioning whether students are being manipulated into using a bank's services, not because it's the best deal but because it benefits the school financially.

A recent report on campus debit cards by the U.S. Public Interest Research Group found nearly 900 partnerships between colleges and financial institutions. Thirty-two of the 50 largest public universities have contracts with banks to provide debit cards linked to bank accounts or prepaid cards.

The report found some of the arrangements subjected students to potentially high fees, such as for overdrafts on checking accounts. Other contracts obligated universities to market the program, giving the impression the schools endorse the bank.

"A checking account is a very personal, important decision to make. You could be banking with them for the next 10 years. Students should absolutely have a clear and unbiased choice of where to bank," said Rich Williams, the study's author and the U.S. Public Interest Research Group's federal higher-education advocate.

ASU officials said the new 11-year partnership with Oklahoma City-based MidFirst Bank was entered with the best interests of students in mind. One of the biggest benefits, they say, is that students incur no ATM fees, even if they use another bank's ATM.

Students also don't have to accept the debit card; they can choose a traditional student ID, called the Sun Card, which has no debit-card feature or ties to a bank. The Sun Card has included a prepaid feature, called Sun Dollars, that can be used at local stores, but ASU is phasing out Sun Dollars by July.

"All of our messaging focuses on 'This is the student's choice to make.' We want them to make an informed decision, and there's no pressure on either side of it," said Aaron Bryant, marketing manager for ASU's business services.

The agreement with MidFirst Bank, one of the largest privately owned banks in the country, guarantees the university a $1 million signing bonus and at least $3.5 million over the life of the contract.

Money it earns in the following ways counts toward the $3.5 million: $15 for every new student account that is open for a year, an additional $2.50 a year thereafter on each account while the student is at ASU, and 4 cents each time the card is swiped for a purchase. If the total take from those and other payments from a credit-card program for faculty and alumni exceed $3.5 million, ASU keeps the extra money. The college also collects bonuses of up to $1 million if a certain number of accounts are opened.

ASU officials said they don't have projections on how much money the university could collect.

This is the first time the state's largest public university has issued student IDs that function as a bank debit card tied to a checking account. The debit cards serve as students' university identification, giving them access to dorms, meal plans, recreation centers and libraries. The university has about 100,000 active IDs and issues about 31,000 a year.

The contract with MidFirst requires the university to take "all commercially reasonable steps to actively promote and support the program," which ASU is doing in e-mail and written communications with freshmen. When students register to attend orientation, for instance, they get an e-mail reminding them to decide which ID card they will use: the Sun Card or the "hot, new Pitchfork ID MasterCard Check Card complete with Sun Devil Checking from MidFirst Bank."

The student-ID/debit card is part of a larger agreement with MidFirst that includes ATMs on campus; debit and credit-card services for employees, alumni and university supporters; advertising at athletic events; and first dibs on any naming-rights package for Sun Devil Stadium offered to a financial institution. ASU unveiled plans in April to renovate the stadium. The sports-marketing portion of the contract could bring in an estimated $10.9 million.

The sports agreement also gives MidFirst perks at athletic events, including 16 football season tickets and 15 basketball season tickets. ASU also agrees to have the school mascot, Sparky, make five appearances at MidFirst events. The head coaches for men's and women's basketball also will do a "meet and greet" at a MidFirst event.

Financial partnerships between banks and universities have come under scrutiny.

For many years, some colleges signed agreements with financial institutions to place them on "preferred lender" lists for student loans in exchange for money. The lenders were often featured on college websites. An investigation in 2007 by then-New York Attorney General Andrew Cuomo caused many universities, including ASU, to stop the practice.

Also, many colleges had exclusive contracts with banks to market credit cards to students. But consumer groups raised an outcry, saying colleges were helping banks ensnare students, already burdened by college loans, in credit-card debt.

In 2009, Congress passed laws with more restrictions on credit-card marketing to young people.

ASU previously had a partnership with Bank of America to offer credit cards to students and alumni but stopped offering students cards about five years ago. ASU no longer has a card deal with Bank of America.

The U.S. Public Interest Research Group is calling campus debit cards "the new frontier" for the banking industry. Young people are particularly sought-after because some don't have checking accounts or may want to switch banks when they move to attend college.

Once a student opens an account, the bank hopes to keep his or her business. A checking account can lead to customers seeking credit cards, student loans, car loans and mortgages. ASU and MidFirst are not offering credit cards to students as part of the agreement.

ASU's contract with MidFirst also provides the bank with names and addresses of students who haven't opted out of having personal information appear in the ASU directory. This is so the bank can calculate royalty payments to the university. ASU says MidFirst will not market independently to students, nor will it share the data with a third party. Communications with students will pass through the university.

The Public Interest Research Group's report has sparked inquiries from members of Congress. U.S. Sen. Dick Durbin, D-Ill., and U.S. Rep. George Miller, D-Calif., asked the U.S. Department of Education earlier this month to look into whether campus-based debit cards provide adequate consumer protections for students and whether the department is ensuring the partnerships comply with federal law. They also wants to know whether the agreements violate student-privacy rights.

The report took issue with several aspects of the debit cards. One concern is that some universities are depositing financial-aid payments in student accounts at the bank partners. That boosts the money that the banks can invest while often paying little or no interest on the accounts. ASU does not pay out financial aid to MidFirst accounts by default.

Another issue is the fees, particularly on overdrafts. Overdraft fees are common among banks. A 2011 report by the Pew Health Group found the median overdraft is $36, while the median overdraft penalty is $35.

Williams, the study's author, reviewed ASU's agreement and said the partnership has some positive features such as free ATM access at other banks. But, he said, the overdraft fees are a negative. If an overdraft occurs, students are charged $32.50 per item up to four overdrafts per day.

As a result, the checking accounts fail to meet the Federal Deposit Insurance Corp.'s Model Safe Accounts guidelines, which are designed for underserved and low- and moderate-income customers. Williams maintains that colleges should use the FDIC's guidelines when they negotiate contracts with banks.

"There are some good things and some concerning things," Williams said of ASU's agreement. "It's unclear if this account would be better than what a student could get off-campus."

MidFirst encourages customers to prevent overdrafts by managing their account balances, said Mike Piazza, MidFirst's vice president and Arizona marketing director. As part of the deal, MidFirst will provide a financial-literacy program to help students manage their money responsibly.

ASU's agreement appears to be the most lucrative of the state universities.

For several years, the University of Arizona has had an arrangement with Wells Fargo to provide a combined student ID/debit card along with ATMs on campus. This fiscal year, the university earned $29,013 from the partnership. The agreement is being renegotiated.

Northern Arizona University doesn't have a combined debit card/student ID and has no plans to start one, said Tom Bauer, a university spokesman.

ASU freshman Carolina Hernandez, 17, was at student orientation this month when she was offered the choice of a traditional student ID or the combined ID/debit card. Hernandez, of Mesa, already has a debit card linked to a checking account and passed up the offer, although she can see why some would find it appealing.

Hernandez said she didn't know the university stands to make money offering debit cards to students and called the revenue-sharing partnership "kind of unnerving."

ASU freshman Robert Choueiri, 17, is considering signing up for the combined card. Choueiri sees it as a way to simplify student life. He wouldn't want to have both a student ID and a separate debit card. "It's one less thing I would have to carry around," he said.

ASU officials say the partnership starts and ends with students and their best interests.

The agreement "helps to offset operational costs at the university, which allows us to keep tuition lower," Bryant said.