NACUBO Issues Guidance on Debit Cards
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- CFPB opens wide-ranging inquiry into campus debit cards
- Chasing Higher One
- Education Department is urged to tighten rules on campus debit cards
- Consumer bureau calls on financial institutions to disclose debit card agreements with colleges
The National Association of College and University Business Officers has issued guidance for colleges on using debit cards for financial aid refunds, a fast-growing practice that has led to criticism of the companies that offer the cards, which can have high fees. The association asks colleges to encourage students to use a full-fledged bank account rather than a preloaded debit card; to offer direct deposit of refunds; to use a competitive bidding process; and to negotiate no-fee or low-fee options for students from the third-party vendors that offer the debit cards. About one-quarter of colleges said in a NACUBO survey that they already use the debit cards, and 33 percent are considering doing so.