CFPB Report: College-Sponsored Credit Cards and Deposit Accounts Carry High Fees

Students at Minority-Serving Institutions Pay Higher Fees; CFPB to Investigate Potential Violations of Consumer Protection Laws

Consumer Financial Protection Bureau (CFPB) reports that college-sponsored credit cards and deposit accounts often have higher fees and less favorable terms compared to other financial products.
CFPB identified 143 partnerships between colleges and credit card providers, representing over 530,000 open accounts.
Students at historically black colleges and universities, for-profit colleges and Hispanic-serving institutions pay higher-than-average fees.
Financial institutions pay tens of millions of dollars every year to colleges and universities, including flat-fee marketing deals and per-signup kickbacks.
CFPB plans to further investigate these practices, focusing on potential violations of federal consumer financial protection laws.