Some colleges secretly paid to market debit cards to their students
College students are switching from credit cards to debit cards for paying their bills. Many schools now offer these cards to their kids. Some use them for distributing financial aid.
That may sound good, but it can create unanticpated problems.
The Consumer Financial Protection Bureau (CFPB) is concerned that some colleges and universities get paid to market these cards to their students - but never disclose that fact.
"We want to make sure that students are choosing the bet possible products and that they know they don't have to chose the one their school is getting paid to market," said Rohit Chopra, an assistant director at the CFPB who deals with student issues.
"Students should shop, they should even think about shopping for a bank account before they come to school and figure out how they can get a low-cost product that suits their need, rather than just what the school is being paid to market to them," he said.
When it comes to financial aid, Chopra says choosing direct deposit to a bank account rather than having it applied to a student debit card is a way to avoid potentially costly card fees.