Not long ago, I wrote a post about BlackboardPay, a card-based solution that can enhance the efficiency and ease of financial services at professional and career colleges in a way that represents students’ interests. You may have also heard, however, that there has been controversy surrounding another card-based solution in the news lately. Below is a brief explanation that should help dispel misconceptions about this situation as well as provide insight into what an institution should look for when searching for a financial aid disbursement partner.
Financial Aid Disbursement Solutions
Currently, several companies’ financial aid disbursement solutions are built upon a model of charging fees on students’ bank cards and checking accounts designated to receive financial aid credit balances or refunds. This model has generated much controversy in recent months, as this approach, in addition to putting institutions at risk for not meeting federal disbursement regulations, is not designed to maximize the educational benefit of students’ financial aid. For a student on a tight budget, excessive fees add up and can significantly impact their higher education experience. Below, we offer 3 principles to keep in mind when selecting a partner to distribute financial aid:
- Standards that Institutions should Seek in Financial Aid Disbursement Solutions “Traditional” fee-based banking models were never designed with the unique needs of students in mind, especially those receiving financial aid, and should be significantly modified.