<p>So the Univ. I'm currently at is practically forcing everyone to open up a "Higher One" debit card account in order to receive refunds that are left over from financial aid or for reimbursements. But of course if you read the fine print that comes with these debit cards you'll find that these debit card accounts are loaded with fees-- $2.50 fees for any ATM withdraw that is not from a specific ATM (of course the specific ATMs are very sparse and if you go off campus you're out of luck for cash) on top of the other bank's fees, $0.50 per transaction fee for debit card use, $10 fee for "inactivity", a $50 fee for being over withdrawn $5 or more, etc. etc. (you get the point). </p>
<p>Now, the real kicker is that if you don't want to do business with this bank, you have to fork over your bank account #, social security #, DL#, etc. if you want to get a direct deposit into your normal bank account. Why should ANYONE have to fork over that kind of information to a 3rd party they never even wanted to do business with in the first place? I can't believe universities are forcing their students into this trash. It is absolutely appalling they are telling students to put money into these account when they'll be nickel and dimed to death on loan money that is completely theirs and that they're already paying interest on. </p>
<p>This has really got my blood boiling. I can't believe institutions of higher learning are letting banks come in to prey on their students like this. Institutions of higher learning or institutions of profit$? This isn't even at some second rate for profit college either, but at a very reputable institution. I am totally disgusted and enraged right now. Universities claim that this will save them thousands of dollars per year in admin costs by not having to send out checks, but I say bull S. We all know where those savings will end up going---towards higher administrator salaries than actually cutting down on tuition costs. What a joke this fiasco is.</p>
<p>I think that grave goes to Johns Hopkins. It looks like JHU and (for example) these schools are using Higher One - University of Bridgeport, University of Central Oklahoma, University of Dallas, University of Findlay, Harrison College, University of Hartford, Kalamazoo Valley Community College, Kent State University, Kentucky Community & Technical College System, Kentucky State University, Kutztown University of Pennsylvania,Portland State University,Southwest Texas Junior College, Southwestern Oklahoma State University, University of North Texas, Vincennes University -but I can’t tell if they require it or if it is just an option.</p>
<p>“at PSU, student funds are not automatically placed into a Higher One account. Students have various options for receiving financial aid, and are encouraged to transfer funds to existing accounts if they do not want to use the Higher One account.”</p>
<p>It sounds to me as if this card could be a nice option for students with no U.S. banking account but that for most students, Higher One and Higher One-affiliated cards should be avoided.</p>
<p>This is morally reprehensible. The university and this company love to tout the convenience of this program, as well as the amount of money it will save the university, but we all know that all they’re doing is preying on horrifically financial illiterate 18 and 19 years that are already swimming in debt, who may not even get refunds back for a few years (i.e. they’ll forget about their accounts/toss the card away=fees). They’re essentially saying that student aren’t allowed to have their money back that they’re already paying interest on unless they pay fees. If you choose not to do business with this company, you still have to fork over your bank account information. Absurd. The less amount of companies that know my personal bank account number the better. They’ll probably make money by selling my information anyway if they get it. </p>
<p>Let’s say you do decide to get a debit card. Many students will see it and spend it on things like beer and the latest version of Call of Duty. Even if you are disciplined enough to follow every single rule in order to avoid fees to get access to your own money that you’re already paying interest on, you are still being essentially strong armed into using credit swipes for every transaction. This is so this company can get higher fees in return through credit card transactions which of course comes out of the pockets of local vendors and small businesses. In the end you still end up paying in the form of higher prices. This card will likely also be used to pay for gas. Many gas stations charge more if you swipe credit. What is a student going to do with this card? Swipe debit and get hit with tons of fees, or swipe credit at the pump and get hit with a higher price? You won’t be able to take out cash either if you’re away from campus without getting hit with ridiculous fees. Morally reprehensible.</p>
<p>Many government agencies and business use debit/ebt cards for fund disbursement. It’s cheaper for them. I agree that the fees are outrageous and that you have to be very careful about reading the “fine print” and jumping through hoops to avoid the fines.
Otherwise, they’re providing an alternative. Yes, you have to provide identification and personal information for the bank transfer. But you’re going to have to start providing that information to lots of people in your life going forward - medical providers, employers, financial institutions… unfortunately, that’s the world we live in.</p>
<p>But EBT cards, employers, medical providers are not charging fees to use YOUR OWN MONEY that you’re already paying interest on. How would consumers feel if they had to pay ridiculous fees just to have a car loan that they’re already paying interest on? How about monthly fees just to have a mortgage on a house that you’re already paying interest on? Students should be infuriated that they’re being strong armed into paying fees on TAX PAYER funded student loans. What has this company done to deserve these ridiculous fees? They certainly aren’t providing the loan. All it is doing is turning what is supposed to be a low interest loan from Uncle Sam for education into a higher interest loan.</p>
<p>Whenever I have wanted direct deposit of anything into any of my bank accounts and/or that of family members, yes, I did have to provide id, dl infor, ssn, and of course, the bank account number in which the funds are to be deposited. I even had to trot out my octogenarian mother and MIL to prove they were still alive in some cases even with POA. So I don’t get the vent. </p>
<p>I agree fully that the school should have gotten a better deal in terms of vendor in dealing with the situation, but you, nor anyone else does not have to use the school’s choice. But yes, you would always have to give that info in order to have money put into your other account. </p>
<p>These days, cards are being used for food stamps, unemployment, refunds, anything just about and,yes, the card issued is that of the choice of whoever is giving the benefits, not a bank or institution of your choice.</p>
<p>Giving ‘benefits’ ? Student loans that you are paying interest on are considered a benefit? The school already has all of my info, why does this unnecessary middle man need it now? Schools have processed and handed out refunds for the past 50 years, I’m sure they’re more than capable of doing it.</p>
<p>If you want a mailed check to you in order to not have to give up your info it looks like there will be a fee for that as well.</p>
<p>Yes, student loans for which you are paying interest are benefits. You try to get a loan like that on your own. In fact,ditch the loan and go for better on the private market. You’ll see what a benefit it is. Why do you think, there are so many postings from students wanting, begging for more of these benefits? It’s because they are a benefit and one hard to get. The school does not want to process and deal with the refund so they are hiring a vendor to do so. Happens all of the time,and no, schools do not have the facilities and staff to do these sort of things as well as a financial institution is. So if you want direct deposit, you have to provide the same information all of us have to do in order to get it. Better to transition you to the real world, my dear.</p>
<p>And yes, a lot of agencies are asking for fees for checks, for statements for everything. If I want checks or paper statements for my Medical account, they now have instituted a charge, a ridiculously hefty one too. My DH’s company does not want to deal with this anymore and have hired an outside vendor to do the administration, and yes, they now charge for things that were free. </p>
<p>As a student, you are actually getting a lot of privileges and benefits that are going to be very rudely pulled from you when you actually do enter the real world unless you have parents holding a financial umbrella over you. So you are just getting a little taste of this now. But yes, if you want a direct deposit of a check to YOUR bank account, you do have to provide the information to the bank that is handling the transaction in order for them to do it properly. And you may even have to pay a fee as well.</p>
<p>^^^^I have never wanted direct deposit. I like getting an actual check, which shows the hours I worked, the pay rate, year to date, etc. A few months ago, my employer told me I’m the only one at my entire facility who does that, and that they are charged $15 every paycheck to write little ole me a check. I reluctantly gave them permission to direct deposit me, and of course I had to provide all of the ID information you mentioned earlier in order to make it happen.</p>
<p>I didn’t like it, but there are only so many things I can be morally outraged by. Otherwise, I’d be in a constant state of agitation about all of the injustices in the world. I just don’t have the energy for it.</p>
<p>I agree with Nrdsb54. We have direct deposit of DH’s check now and if we want the see the hours worked, rate, etc, we have to go on line, and get the info that way, which I don’t like either. But that’s the way it works here. And even though the employer certainly had all of the info we had to give, in order to get the direct deposit, we had to give it again. And every so many years company will verify you for health benefits or other things and you have to pull out the old birth certificates and marriage certificates and a recent bank statement (oh, yes, just happened–lots of fraud out there) in order to stay qualified. Welcome to the real world.</p>
<p>1) you arent charged a fee if you direct deposit.
2) there are ways to avoid fees with the card.
3) it does cost the school money (or resources that translate to money) for them to process your financial aid and loans. Would you rather they just increased fees upfront, or give you the no-cost options presented?
Sorry, in the scheme of things, this just doesn’t produce moral outrage for me. </p>
<p>^I disagree. The payments from financial aid are school related, it is there to mostly pay for school tuition and fees. It is their obligation to process the money, it is part of being a college/university. So yes, I would rather they put whatever fees needed to process the stuff or just lump it in with whatever they charge than throwing 19 year old to the for profit institution whose main motives are to squeeze as much money out of these financially unsophisticated kids.</p>
<p>You may disagree, but this is the direction that companies and universities are taking. What you would rather see is not pertinent unless enough people make a big enough deal about it to impact the decision. Actually the foolish kids who abuse the card privileges are the ones that will be partially subsidizing the entire deal. That’s how it tends to work in the world.</p>
<p>Why the institutions that have their own credit union affiliations (and most public universities do) don’t just handle this through that credit union is beyond me.</p>
<p>I don’t know how prevalent is this but on a 60 minutes episode, Higher One provides free trips and supposedly training conference to the university administrators. I don’t know how much training is involved to send a balance to Higher One to issue a debit card but the trip includes wine tastings and dining at fine restaurant in the Napa valley. I can’t help but being cynical with these things after many schools were caught getting kickbacks from banks for steering financial aid loans. If you want to keep the cost down, leave the middle man out of the loop, but then again maybe it is all about money and more of it from the students and families.</p>
<p>They got a better deal from another institution. Actually, some things haven’t changed one bit. When we went to college the bank, card and other things provided to the students were terrible rip offs with convenience the major advantage. If you weren’t careful, you got charges for everything. These days with the internet, there are so many other choices. Back then, the one bank at our college was pretty much the only game in town and if you didn’t go with them, it was terribly difficult or expensive or both to make financial transaction, and believe me, the bank knew it. Took advantage of the situation like you would not believe. Now, students have pretty much the same choices as all of us do with the added convenience factor of special facilities right at hand. My one son who went/goes to a small LAC had a half dozen banks vying for the business of these kids. For the one in the big city, big uni, the choices were overwhelming. </p>
<p>But yes, you do have to deal with whoever the university chooses. You may be better off when a bank is dealing with the finances. At my son’s college where the stuff is done in house, getting a refund check takes a while. Only one person cuts those checks, she does it once a week and if she’s out the week your check comes in , you’re out of luck. But you don’t have to give them your ssn, dl info, bank info, etc. It comes snail mail in the form of a check. It took nearly three weeks for my son to get his money, more because they sent the check to the house instead of to his college mailbox,</p>
<p>In the last few years, I’ve been asked to provide photo ID, Social Security number etc etc when opening new sub-accounts at the credit union where I’ve had an account for almost 30 years. The tellers said that their hands were tied, that this was part of a Homeland Security effort to identify all account owners. Something about being able to trace money transfers. </p>
<p>OP, that might be part of what’s going on with the Higher One request for information. </p>
<p>I agree that the best thing to do is to provide the information and have Higher One transfer the money to your own account. You could also urge more students at your school to do the same thing. If enough students don’t take the bait, then Higher One doesn’t make money doing this.</p>
<p>I don’t see what’s the big deal if you can have the money transferred to your own account and avoid the fees. So you have to give up your account number to make that happen–that’s because the university is using a private company to manage the system. And didn’t we have this exact same discussion before?</p>