Scamming College Kids (school, money, income, officials)

[DRob4JC]

College kids are being scammed by the "Higher One".

Debit cards replacing credit cards on college campuses

This is not a credit card offer. Instead, it is a new type of plastic that allows students to easily access money from their college loans everywhere from the bookstore to the bar with the swipe of a card. These cards, however, are not subject to the sweeping reforms that took effect this year and sought to curtail similar relationships between colleges and credit card issuers.

...

Enter Higher One, which offers to take over that cumbersome process for colleges. The company also sets up accounts for students where the loans are deposited. Once activated, Higher One's product acts as a debit card, allowing students access to loan money left over after tuition.


Some schools are using these cards as student ID cards also.

Any activated cards not used for nine months gets a $19 fee. A 50 cent fee for using a pin number instead of a signature. A $2.50 fee for using other ATMs.

[uggabugga]

Sounds like a scam all right.

[aspiesmom]

Parents need to come down hard and hold these so-called "college officials" accountable.

washingtonpost.com

"...But college officials contend that the loan cards make life much easier for administrators and students, and that they can provide an extra bit of income for cash-strapped schools. ..."

[Ceece]

Doesn't loan money "left over after tuition" just go to the student to use anyway? Why the need for a middle man that charges fees?

[Avengerfire]

If a college "kid" is dumb enough to activate and use one of those instead of using their own bank account they deserve to be "scammed."

[mb1547]

This really is pretty awful--it's really taking advantage of kids who are have to borrow money for school in the first place--the fees are outrageous. I'm sure most college aged kids don't understand that. Let's hope some parents step in and explain...and cut up the card.