Dive Brief:

• Following failed efforts by the U.S. Department of Education to negotiate regulations on student debit card arrangements between colleges and banks, Democrats on Thursday introduced legislation on the issue.
• According to the Chronicle of Higher Education, more than 60 Democrats from the U.S. Senate and House of Representatives are sponsoring the proposed legislation aimed at protecting students from exploitation through the debit card arrangements.
• The House version of the bill prohibits revenue-sharing deals between colleges and banks for college-issued deposit accounts or debit cards, requiring that banks pay colleges at a market rate to provide the banking services.

Dive Insight:

The proposal would also ban bank gifts to college officials and inducements to students for using their financial products on or near college campuses. Also, colleges would publicly disclose marketing agreements with banks and submit reports to the Consumer Financial Protection Bureau regarding these agreements. Due to the political reality in Congress, the chances that the legislation will pass are slim, at best.