Boston Student Loan Lawyer

Law Office of Adam S. Minsky

  • Home
  • Services
  • About
  • Publications & Press
  • Testimonials
  • Speaking & Trainings
  • Contact
  • Blog

Colleges Outsource Student Loan Accounts, and Students Pay the Price

June 19, 2012 | Adam S. Minsky, Esq. Articles

Share the post "Colleges Outsource Student Loan Accounts, and Students Pay the Price"

  • Facebook
  • Twitter

As if the entire student loan industry wasn’t bad enough, there are new players trying to enter the field to take advantage of student borrowers. A few weeks ago I blogged about student loan debt-settlement companies. Here’s another one for you: student account debit card companies.

Increasingly, colleges and universities are outsourcing the management of student accounts and disbursed student loans to private companies. Instead of placing your loan disbursements into your student account, the funds are disbursed into accounts held by a specialized debit card company. The company then charges exorbitant fees to students- debit card fees, account maintenance fees, balance fees, etc, netting tens of millions of dollars in profits each year. What’s worse is that at many schools, colleges co-brand their own school’s name with that of the student account company, giving students the impression that the company is fair and legitimate, or even part of the college itself. This is remarkably similar to stories from a few years ago where college financial aid offices got a little too cozy with private student loan companies (and guess who paid the price then, too?).

It seems everyone has something to gain by taking advantage of young people who are just trying to get an education and get ahead in life. To read more about student account debit card companies, check out this story and this story.

Share the post "Colleges Outsource Student Loan Accounts, and Students Pay the Price"

  • Facebook
  • Twitter

Articles

About Adam S. Minsky, Esq.

Adam S. Minsky founded the first law office in Massachusetts devoted entirely to assisting student loan borrowers, and he is one of the only attorneys in the country practicing in this area of law. He provides counsel, legal assistance, and direct advocacy for borrowers on a variety of student loan-related matters. He regularly speaks to students, graduates, and advocates about the latest developments in higher education financing.

Books by Adam S. Minsky

The Student Loan Handbook for Law Students and Attorneys

The Student Loan Handbook for Law Students and Attorneys

Student Loan Debt 101

Student Loan Debt 101: The Definitive Guide to Understanding and Managing Your Student Loans

Student Loans for Parents and Cosigners

The Student Loan Guide for Parents and Cosigners

617-936-2788
asminsky@minsky-law.com
By Appointment Only 265 Franklin Street, Suite 1702
Boston, MA 02110

Copyright © 2023 Adam S. Minsky · DISCLAIMER: This website may be considered advertising under Massachusetts Supreme Judicial Court Rules. The content of this website is for informational purposes and should not be considered legal advice. This web page does not establish an attorney-client relationship. Terms of Use

Copyright © 2023 · MinskyLaw on Genesis Framework · WordPress · Log in