9 months ago
Let’s start with statistics! The bureau found out that the students who use recommended college accounts paid more than $27 million in maintenance and overdraft fees for a single academic year. Looks like all these college-sponsored bank accounts cost US students millions of dollars in fees. What should you do tho? Here’s what the Typical Student team is going to tell you about.
Consumer Financial Protection Bureau
Within the investigation, the Consumer Financial Protection Bureau figured out that all the college-sponsored bank accounts cost students big money. In fact, the Education Department under President Donald Trump has never shown the analysis. It appeared only after the advocacy groups recently obtained it through a Freedom of Information Act request.
So, there were 573 colleges reviewed. As a result, the analysis found out that 1.3 million students attending these colleges have open and active accounts with their colleges’ account providers.
As an example, Wells Fargo charged students $46.99 a year in fees. On the other hand, those students who used accounts with PNC were typically dinged $15.84 a year when most Americans pay around $9 a month.
“A lot of college students are on really, really tight budgets,” said Whitney Barkley-Denney, a specialist in student finance at the Center for Responsible Lending. “Any kind of disruption in that cash flow can be devastating.”
To say more, in 2018, about 120 colleges report being rewarded by a bank. Needless to say, it is made to promote its financial products. Wells Fargo paid $2,127,554 to colleges last year when PNC paid $7,562,570.
Keep up with the Typical Student daily email