The Consumer Financial Protection Bureau has announced that it is beginning an inquiry into the arrangements between colleges, banks and debit card companies, reports Inside High Ed. The announcement is the latest indication that federal agencies and Congress are taking an increased interest in how debit cards are used to access federal financial aid.
The bureau is asking for input on a few separate topics: debit cards supplied by companies like Higher One, which give students the money left over from grants and loans after paying tuition; arrangements between colleges and banks that allow student identification cards to be used as debit cards; and college-affiliated bank accounts.