I've two kids in college currently: one at Iowa State and one at Iowa. They both graduate this school year and Boo and I have been carefully navigating them through the treacherous financial waters of college. They've taken on only a small student loan debt and we've refused to co-sign loans: a surefire sign that a bank believes there's a real chance the kids CAN'T pay it back.
Here's something to DEFINITELY avoid: college-sponsored debit cards.
A study that the Trump administration held onto for 10-months shows college kids are definitely getting financially hosed.
The administration is finally releasing a report that shows how many students are paying high annual fees for school-sponsored debit cards. The report was only released because of a Freedom of Information request.
The study found that students paid 27-point-6 million dollars in account fees using college-endorsed debit or prepaid accounts. Students at universities that received no compensation from banks paid about 12 dollars a year. At schools that received compensation they paid more than 36 dollars a year on average. Embattled Wells Fargo had the highest prices, charging nearly 47 dollars a year.
Illustrating what a money grab the student debit card is, 116 colleges shared 16.6 million dollars in royalties alone!
Now that you’ve got the information, experts recommend that your student has a card from the family bank, not one that's pushed on campus. You’ll both save a lot!