To see if students are getting good deals, the Consumer Financial Protection Bureau is reviewing the impact of products marketed to students through their university.
These financial products include student identification cards that double as credit cards, cards used to access scholarships and student loans, and school-affiliated bank accounts.
“With student debt topping $1 trillion, student loans are no longer the exception, they are the norm,” said Rohit Chopra, student loan mediator at the bureau. “If students are hit with unexpected fees from products that they thought were going to be free, that will make it even tougher to pay back large student loan debt.”
The Credit CARD Act of 2009 made agreements between colleges and credit card issuers subject to public disclosure, but less is known about arrangements concerning other products marketed to students.
To get a better idea if these other financial products are in the best interest of students, the bureau is asking students, families and on-campus financial institutions to submit comments about their experiences.
“We want to get an understanding of how schools go about making these agreements,” Chopra said.
The bureau is looking for input on what information schools share with financial institutions, how campus financial products are marketed to students, what fees students are being charged when using these products and how schools set up marketing agreements. Comments can be submitted until March 18.
Chopra said it was too soon to tell what would happen if the bureau found students are not getting good deals from college-endorsed banking products.
It’s important for students to know they have other options, Chopra said.
Ian Hoek Spaans, an 18-year-old UF mechanical engineering freshman, said when he came to UF, his parents felt like he had to switch banks to Wells Fargo.
Hoek Spaans said the Wells Fargo on campus has been convenient, but he isn’t thrilled about the added fees like having to pay for checks.
Wells Fargo spokeswoman Richele Messick said the company has had a campus card relationship with UF since 1995. Messick said Wells Fargo is interested in having students as customers because they want to build lifelong relationships.
“It’s about the student choice and decision on whether if they think it’s a worthwhile option,” she said.
Contact Alexa Volland at avolland@alligator.org.
