Center for American Progress

Take Card Vendors Out of the Student Aid Refund Game
In the News

Take Card Vendors Out of the Student Aid Refund Game

Elizabeth Baylor and Joe Valenti discuss how the U.S. Department of the Treasury's DirectExpress debit card for college students can help make sure refund money is secure and accessible.

Every year, millions of students borrow federal loans to cover college expenses. For many, this money is crucial for more than just tuition. It helps these students stay in school by paying for food, rent, transportation and other living costs. But lately, this money has also become the lifeblood for predatory financial vendors that gobble up funds with unnecessary, exploitative and hidden fees.

Although the U.S. Department of Education has taken recent action to eradicate the worst practices companies use to cut into students’ pocketbooks, it is not enough. The government should expand the disbursement options available to students to include the

The above excerpt was originally published in American Banker. Click here to view the full article.

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Elizabeth Baylor

Director, Postsecondary Education

Joe Valenti

Director, Consumer Finance