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College-Sponsored Bank Accounts Can Saddle Students With High Fees

Many colleges also have agreements to co-sponsor credit cards for students. But since new consumer protections were instituted for campus credit cards in 2009, the number of credit card agreements has dropped. Banks have shifted the focus of marketing partnerships from credit cards to college-sponsored bank accounts.

In October 2015, the Department of Education instituted new consumer protections for college-sponsored bank accounts to increase transparency and provide safeguards for students, such as access to a large network of free ATMs.

But despite the new regulations, the CFPB investigation found that colleges continue to market products that have costly account fees and make it difficult for students to find out the true costs.

Even though it’s required by law, many colleges don’t publicly disclose marketing agreements, says Martindale, who last yearinvestigated how difficult it was for students to get information on credit card contracts at universities.

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