Education Department ramps up oversight of college banking deals following critical CFPB report

Higher Ed Dive 

Rick Seltzer
October 13, 2022
Dive Brief:
  • Colleges that partner with financial service providers like banks appear to be promoting accounts to students that are more expensive than other options available in the marketplace, the Consumer Financial Protection Bureau said in an annual report to Congress on Thursday.
  • Institutions are also likely failing to meet U.S. Department of Education requirements about sharing information on student account options and disclosing their deals with companies, the CFPB found.
  • The U.S. Department of Education issued guidance Thursday making clear that colleges are responsible for seeing that campus financial products uphold students’ best interest. That includes reviewing whether financial account fees are consistent with or below market rates. The department said it will ramp up oversight, in part by tracking new data and adding staff.

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