Statement on Department of Education’s Proposed Cash Management Regulations
WASHINGTON – Committee on Education and the Workforce Committee Ranking Member Robert C. “Bobby” Scott (D-VA) issued the following statement on the Department of Education’s proposed cash management rules:
“The Department of Education has released proposed regulations to protect students from excessive fees on co-branded debit and prepaid cards offered by institutions of higher education that have agreements with banks. About 40 percent of college students attend these institutions, and investigations by the Government Accountability Office, the Consumer Financial Protection Bureau, and the Department of Education’s Inspector General found that students were much more likely to choose accounts endorsed by their colleges – whether or not they were the best deal available to them.
“Too often these accounts have high fees that drain students’ limited financial resources. These proposed rules are a positive step that would require colleges to offer clear information and options to students for how they want to receive their student aid dollars, guarantees they can use their own bank account, and protects them from excessive usage and overdraft fees.”
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