GAO recommends changes for student debit cards

[Omaha Steve]

Source: AP-Excite

By KIMBERLY HEFLING

WASHINGTON (AP) - Small fees add up for college students using college-issued debit and prepaid cards, which are often used to draw financial aid, and congressional investigators on Thursday urged greater oversight of their use.

These types of cards are becoming more common on campuses and double sometimes as a student ID card. They are popular with both college administrators and many students because of the convenience, but using a third-party financial provider can also save colleges and universities money as they offer services such as distributing financial aid or making tuition refunds.

The Government Accountability Office said the fees generally are similar to those other debit cards charge. But, it said, some students end up with out-of-network ATM fees, and some cards have terms that charge a fee if students enter a pin number to receive money instead of signing to get cash back.

It says it's unclear how much money is garnered from these fees, but Federal Deposit Insurance Corporation staff members told GAO that it has received complaints from students of fees ranging from hundreds of dollars to more than $1,000, the report said.

FULL story at link.


Read more: http://apnews.excite.com/article/20140213/DABUIE500.html

[TheMightyFavog]

1. We had something like this.

Only time I ever used this was to do laundry, as the accounts linked to the student ID was the only thing the laundromats in our dorms would accept.