Experience with HigherOne Mastercard or College Choice card?

Test Preparation
1

<p>My son is a sophomore at Western WA University. The Student Accounts office just sent out a "Choice Card Debit MasterCard" from HigherOne Bank of Connecticut. The idea is that if a student is due a refund (say he drops a course) that the Student Accounts office would "load" the refund amount on the debit card. </p>

<p>The accompanying material says the student MUST choose a "refund preference" and that preference could be a checking account. Here's the rub: For my guy to choose his (nonprofit local credit union) checking account, he must first go to the HigherOne website and tell HigherOne his name, social security number, and his credit union and checking account number. It looks like they want his state driver's license too. </p>

<p>This alarms me (and the student too!). Why should we a) have to open a new account with HigherOne or b) have to provide such sweeping private information to a bank that is out of state and strange to our family? Can the university truly compel students to open a bank account at a particular bank?</p>

<p>Has anyone else dealt with this situation? Any advice?</p>

2

<p>Hi Olymom,</p>

<p>My name is Lauren, and I am Higher One’s Campus Relations Coordinator. In my role I work with students at each of the campuses Higher One serves in order to raise awareness of the program, talk to students about their refund options, answer questions and gather feedback. I understand your concern and that of your son’s, and I’m hoping I might be able to help.</p>

<p>Higher One has partnered with the school to manage the entire refund process from the back-end. It also offers the OneAccount checking account as one option for students. The card your son received in the mail is the “key” to unlocking his refund preference. As you mentioned, any time the college owes a student money, a refund is issued to the student. By unlocking his refund preference using the card, your son will choose the form in which he wishes to receive any potential refund money. To choose his refund preference, your son can access the activation website by visiting the URL on the back of his card. There, he will be prompted to “Get Started” by entering the 16-digit code. Refund choices will be explained and when your son is ready, he can choose his preference. This is why we call the card the “key” – that 16-digit code is what is needed to select a refund preference.</p>

<p>In terms of the material reading students “must” choose a refund preference, this refers to federal regulations. Per the Department of Education, academic institutions are required to issue financial aid refunds within a certain period of time. Because Higher One is handling this process for this school, it complies with all federal regulations, and simply needs to know how the students wants to receive the funds.</p>

<p>We encourage students to choose the refund option that works best for them. In some cases, this may be a direct deposit to an existing checking account, such has the nonprofit local credit union you mentioned. If this is the case, we ask for banking information (account number, routing number, bank name) in order to successfully transfer the money to that account. No SSN or license information is needed for this option.</p>

<p>As you mentioned, one of the choices we offer students for receiving refunds is electing a same day deposit to the optional OneAccount. The OneAccount is a fully functioning, FDIC Insured checking account with no minimum balance and no monthly fees. If a student chooses to open a OneAccount, the card received in the mail will then act as a Debit MasterCard linked to that account.</p>

<p>Only if your son elected to open the OneAccount would he be prompted to provide his SSN and license information. Again, if he were to choose Direct Deposit to an existing account, there is no need or prompt to provide either of these pieces of information. Due to federal regulations, all financial institutions, including Higher One, are required to properly identify each of their account holders. This Customer Identity Program, or CIP, is a provision of the P.A.T.R.I.O.T. Act. Again, if your son does not wish to open a Higher One checking account, he does not have to provide this information.</p>

<p>I hope this was helpful! If there are any other questions you have for us at Higher One, please feel free to contact Customer Care by calling the number on the back of the card M-F 8am-11pm EST, or by using Easy Help which is available 24/7.</p>