New Rules Would Provide Students With Flexibility In How They Receive Financial Aid

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May 19, 2015
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Paying for College, Policy, Checking Accounts, Current Events

New rules that college-bound seniors should be aware of.  From Dept. of Education:

The U.S. Department of Education (ED) is cracking down on school-bank partnerships that unfairly target college students receiving federal student aid. Last Friday, ED announced proposed regulations that would ensure students aren’t required to receive their federal student aid on prepaid or debit cards that charge fees for overdrawing the accounts.

Why is this important?  

Simply, it allows students to choose to have their financial aid refunds deposited directly into their bank account rather than have to deal with another bank that the school has a relationship with.  So, be sure to have your students tell financial aid that any deposits should go into their account.  Not sure when these new rules will take effect but they will be beneficial for students.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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