Thursday, May 28, 2015

Beware of University Debit Cards

Many universities strongly encourage students to employ debit cards sponsored by their alma maters. However, the students may not realize that the debit cards are sometimes not a good deal.

From the U.S. PIRG news release

The U.S. Department of Education proposed today (May 15) a rule that protects students from high fees, aggressive marketing, and lack of transparency in financial aid debit accounts that affect over 9 million college students.  Students have been pushed into these accounts with biased marketing that is hard to opt out of, and then hit with unusual and unexpected fees, such as per-swipe fees and inactivity fees, which are docked out of their limited financial aid dollars.  U.S. Public Interest Research Group’s Higher Education Program Director Christine Lindstrom served on the rule-making panel that led to this draft rule, and made this statement in reaction to the proposal: 

“The U.S. Department of Education stood strong against the banks and financial firms that abuse financial aid recipients on campus through unfair campus banking arrangements.   Banks do not use these tactics in the banking marketplace off-campus and there should be zero tolerance for these tactics on campus, given students’ financial vulnerability and overall debt burden.”

You can read more here.


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