Earlier today, we told you about the U.S. Public Interest Research Group report on how the growing number of ethically questionable partnerships between U.S. colleges and financial institutions was resulting in millions of college students being pushed toward receiving their financial aid payments on cards costing hundreds of millions of dollars in fees to users each year. The study appears to have gotten the attention of some folks in Washington.
The cost of a college education continues to rise at the same time as many schools seek to trim their budgets. This means that a growing number of colleges are turning to financial institutions to handle the distribution of student aid. And that means that students all around the country are receiving their financial aid on cards that end up making money for the bank.