WASHINGTON, DC – U.S. Senator Jack Reed (D-RI), a senior member of the Senate Banking, Housing, and Urban Affairs Committee, issued the following statement after the Consumer Financial Protection Bureau (CFPB) released a report finding that some marketing deals between big banks and institutions of higher learning have led to costly fees and financial risks for students:
“College students are being taken advantage of and it’s got to stop. Despite Department of Education regulations to curb abusive practices in student banking on campus, the Consumer Financial Protection Bureau’s latest report shows that some college administrators are not putting students’ financial interests first when negotating deals with banks.
“Last month, I sent a letter to the Secretary of Education asking for information about enforcement of the cash management rules that require colleges and universities to put students first in negotiating college-sponsored banking products. We invest billions of dollars in student financial aid so that talented students can afford college. We expect that colleges will safeguard this investment and put students first.”