Dive Brief:

• A federal investigator is recommending stricter rules for debit cards that are given to college students for accessing financial aid funds.
• Among the recommendations in the Department of Education’s Office of Inspector General report: Require colleges to monitor their debit card providers, making sure the providers follow federal rules and have a process for resolving student complaints.
• The report follows similar conclusions from the Government Accountability Office and the Consumer Financial Protection Bureau.

Dive Insight:

These recommendations will likely be wrapped into the education department’s consideration of wider rule-making on federal student aid issues. Also included in the report’s recommendations: Make sure that debit card providers give students “objective and neutral” information about their products and stop charging transaction or administrative fees to access federal aid funds. And, develop regulations to address conflict-of-interest issues and the financial incentives that colleges may have in their relationships with the card providers.