Today’s College Students Can Face Serious Money Issues Through Bank Products - Eleanor Lee Yates, Diverse Education

Today, many colleges and universities offer student ID cards that double as credit cards and debit cards through school-affiliated bank accounts. Some cards allow students to access scholarship and student loan money. A report from the U.S. Public Interest Research Group Education Fund, titled The Campus Debit Card Trap, notes how some accounts include large fees for balance inquiries and transfers. Some students pay the fees with their federal student aid allowance. The Federal Deposit Insurance Corporation settled last year with two banks for “unfair and deceptive practices.” The banks paid the FDIC restitution of approximately $11 million. The CFPB now suggests students use direct deposit instead of school debit cards. According to the organization, 799 higher education institutions, foundations and alumni associations collected a combined $62,428,281 from card issuers in 2011. http://diverseeducation.com/article/53709/