Students Criticize ‘Collusion’ Between Banks and Colleges – Government – The Chronicle of Higher Education

• Students Criticize ‘Collusion’ Between Banks and Colleges – Government – The Chronicle of Higher Education

  Encourage positive financial arrangements not negative ones.

  tags: education learning students collusion banks colleges higher education government

  • Congress and federal regulators should crack down on financial arrangements between colleges and banks, students and consumer advocates said on Monday at a forum arranged by the Consumer Financial Protection Bureau.

  • students described how their colleges had steered them toward banks and other companies that offered the colleges revenue sharing, staff support, or other perks.

  • "Cleaning up these contracts will send a message to college administrations that you cannot sell out your students."

  • "When that profit motive is taken out, schools can focus on the mission of helping students understand their options,"

  • Nearly 900 colleges have relationships with third-party providers of checking and debit or prepaid cards,

  • Richard Cordray, the agency’s director, said he was "concerned that some of our colleges and universities, whether well intentioned or not, may be encouraging or even requiring our young people to use financial products that do not offer the best deals."

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