By Danielle Douglas-Gabriel Danielle Douglas-Gabriel Reporter covering the economics of education Email Bio Follow April 4 at 3:41 PM College students paid nearly $25 million in fees on campus-sponsored debit cards last year as banks struck lucrative deals with universities to offer financial products to largely low-income populations, according to a report released Thursday by the U.S. Public Interest Research Group.The advocacy group combed through a U.S.
As a result, those accounts tend to feature fewer protections and higher fees for monthly maintenance, use of out-of-network ATMs, wire transfers or overdrafts. Banks that pay colleges for the opportunity to market these cards to students can derive hefty profits.Wells Fargo earned $11.3 million by charging students an average of $44.84 in fees during a 12-month period, the report found.
According to the report, Wells Fargo, PNC Bank and U.S. Bank are among institutions that give schools incentives to maximize the number of campus cards by providing colleges with royalty payments based on the percentage of students with accounts. Wells Fargo struck a deal with the University of North Texas that gives the school bonus payments for adding more than 15,000 accounts.
“It is an offer, completely voluntary, and students can choose or not choose to apply and engage with PNC Bank,” Lyon said.
Oh the audacity of making interest in mutually agreed upon loans! Sheesh.
It's a feature, not a bug...
Colleges are making millions off of young people by brainwashing them for four years then giving them a useless piece of paper. TradeSchool