The Consumer Financial Protection Bureau today issued consumer advice to all students who wish to receive scholarships and student loans through a school-approved debit card. We also asked consumers to tell us about their experiences with financial aid.
Yesterday, the Federal Deposit Insurance Corporation, another bank regulator that works closely with the CFPB, fined one of the largest providers of campus debit cards.
Many college students, especially those who attend community colleges or live off campus, receive scholarships, grants, and student loans that exceed their tuition costs. These funds help them pay for rent, transportation to and from school, and other expenses such as textbooks. Many schools work with third-party financial companies to distribute these funds directly to students. Consumers should keep the following in mind:
- You may not be required to use a specific bank or credit card. There may be a financial institution on your campus, but it may not generally require you to use a specific account or credit card to access student aid. If you have federal student loans, your school should offer paper check or cash options.
- Consider choosing an account before you enroll. Shop to your heart’s content, and don’t be limited to banks that have ATMs on or near campus. Some financial institutions don’t charge any fees for using ATMs, and some automatically refund you for fees charged for using non-network ATMs. Many institutions also offer mobile apps to deposit paper checks remotely.
- If your school offers direct deposit, sign up as soon as possible. If your school offers direct deposit, you can provide your school with your account information to get your funds faster.
If you have specific issues with your student checking account that need to be addressed, please file a complaint with the CFPB. If you simply want to share your experience with student checking accounts and debit cards, please tell us your story and use the “Financial Aid” tag. We will also share what we have learned with the Department of Education, which recently issued a statement on this topic.
If you have more questions about student checking accounts, contact the CFPB.
