by ERICA PEREZ
Nearly half of the state’s community colleges and a handful of other higher education institutions now disburse student financial aid on debit cards through contracts with Higher One, a financial firm that has garnered increasing scrutiny for charging multiple fees, aggressive marketing tactics and privacy concerns.
At least 52 California Community Colleges use the company, from Imperial Valley College to Shasta College. CSU Fresno also contracts with the company.
Earlier this year, Ventura College student Sherry McFall filed a class-action lawsuit against Higher One, claiming the company created banking accounts for students without their consent, lured them into using Higher One accounts and improperly disclosed fees. An attorney for Higher One said the case has no merit.
A May report by the U.S. PIRG Education Fund identified Higher One as the biggest player of its kind in the higher education market, with 520 partner campuses that enroll more than 4.3 million students. The report noted that many banking or debit card arrangements between financial firms and colleges feature weak consumer protections and limit students’ options.
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