George Miller, the ranking Democrat on the House Education Committee.Ĭhopra said universities are "looking to make up revenues in creative ways." "What we see here is that they've shopped for the best deal for the university, not for their students," said U.S. At a number of universities, banks have even gotten into the business of printing official student IDs, so the same card that gains a freshman access to the library can get him cash from the ATM. TIPS From The ABC News Fixer: What to Tell Your College Kid About Managing Moneyīank officials may be staffing orientation sessions, printing T-shirts, and hosting welcoming parties. In many cases, students and parents were never told that banks paid millions of dollars in exchange for exclusive campus access. ![]() ![]() Members of Congress and the Consumer Financial Protection Bureau told ABC News they are now examining hundreds of these agreements. A study by the Public Interest Research Group last year found that there are now 900 card partnerships between colleges and banks – agreements that could impact more than 9 million students nationwide. ![]() "Too often these deals aren't what's in the best interest of students."įederal officials are increasingly concerned about the burgeoning number of deals between banks and American universities, saying colleges eager for new streams of income may be short changing their students. "Unfortunately, many see students as nothing more than dollar signs in backpacks," said Rohit Chopra, who is looking into the issue for the U.S. 5, 2013 — - The nation's top consumer watchdog agency has opened an inquiry into the multi-million dollar deals between American universities and big banks for recruiting students to open checking accounts that critics say may be saddled with extra fees.
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