About 900 colleges nationwide have agreements with banks or financial services companies for debit or prepaid cards for financial aid disbursement, student identification cards and other services, despite concerns and occasional controversy about fees on those cards, according to a study released Wednesday by the U.S. Public Interest Research Group's Education Fund. Despite inroads from banks and other companies offering prepaid debit cards, Higher One still dominates the market, with agreements on more than 500 campuses.
Prepaid debit cards can come with high fees, including a 50-cent "per swipe" fee for Higher One cards if they are used with a personal identification number (as a debit card) rather than a signature (as a credit card). The report calls on colleges to negotiate agreements with lower fees and to provide students with a range of options, including checks and bank deposits, for financial aid disbursements.
- Chasing Higher One
- Consumer bureau issues initial findings on college debit card deals
- Higher One agrees to $15 million settlement to resolve charges over fees
- Consumer bureau calls on financial institutions to disclose debit card agreements with colleges
- Education Department is urged to tighten rules on campus debit cards
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