Banks Skim Millions in Fees From Student Aid Using Debit-Card-Linked Student IDs

http://www.commondreams.org/newswire/2012/05/30-0

WASHINGTON - May 30 - Over 9 million students are at risk for increased educational debt, due to bank-affiliated campus debit cards that come with high fees, insufficient consumer protections, and few options.  Financial institutions now have affinity partnerships with almost 900 campuses nationwide, grafting bank products onto student IDs and other campus cards to become the primary recipient of billions in federal financial aid to distribute to students.

“Campus debit cards are wolves in sheep’s clothing,” observed Rich Williams, U.S. PIRG Higher Education Advocate and report co-author.  “Students think they can access their dollars freely, but instead their aid is being eaten up in fees.”