It took Mario Parker-Milligan less than a semester to decide that he was paying too many fees to Higher One, the company hired by his college to pay out students’ financial aid on debit cards, the Associated Press reports. Four years after he opted out, his classmates still face more than a dozen fees — for replacement cards, for using the cards as all-purpose debit cards, for using an ATM other than the two on-campus kiosks owned by Higher One.
“They sold it as a faster, cheaper way for the college to get students their money,” said Parker-Milligan, 23, student body president at Lane Community College in Eugene, Ore. “It may be cheaper for the college, but it’s not cheaper for the students.”
As many as 900 colleges are pushing students into using payment cards that carry hefty costs, sometimes even to get to their financial aid money, according to a report to be released Wednesday by a public interest group. Colleges and banks rake in millions from the fees, often through secretive deals and sometimes in apparent violation of federal law, according to the report, an early copy of which was obtained by The Associated Press……Read More