Colleges are getting millions to steer students toward certain banks

By Danielle Douglas, May 27 at 12:39 pm

There are a few things I remember about my college ID: the goofy picture, class insignia and resident hall sticker on the card. One thing that crucial piece of plastic did not feature was a debit card function. Things have changed.

Now many student IDs double as debit or prepaid cards that come loaded with financial aid money. Colleges promote these hybrid cards as a convenient way for students to manage funds. But the terms of the accounts aren't always transparent, and some cards are riddled with fees. And what's in it for the schools? A few million dollars in payments from financial firms.