WASHINGTON—Colleges and universities continue to add banking functions, such as those of a debit or credit card, to student identification cards and charging students fees and interest for the use, a new report reveals.
Student IDs are typically used to enter campus buildings, access online sites and check out library books. But some schools have entered into financial agreements with banks so students can link their ID cards to private banking accounts, reported Voice of America.
The convenience allows students to pay for food, school supplies and other expenses on campus. But the research from U.S. Public Interest Research Group (PIRG), a nonprofit organization focused on protecting individuals’ financial interests, suggests these card programs put some students at risk of paying high banking fees.
Kaitlyn Vitez, higher education campaign director for PIRG, said the organization has looked into agreements between schools and banks for several years, she said.
More Than $20 Million in Fees
PIRG found that students with campus debit cards paid more than $24 million in fees.
“Some students paid an extra fee to use an ATM machine to withdraw money that wasn’t in their banking network. Or, they paid penalty fees for overdrawing bank accounts. Many international students faced fees for using the cards for purchases outside the U.S.,” stated Voice of America in its analysis.