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As many as 900 colleges are pushing students into using paymentcards that carry hefty costs, sometimes even to get to theirfinancial aid money, according to a report to be released Wednesdayby a public interest group. Colleges and banks rake in millions from the fees, often throughsecretive deals and sometimes in apparent violation of federal law,according to the report, an early copy of which was obtained by The Associated Press . More than two out of five U.S. higher-education students more than 9 million people attendschools that have deals with financial companies, says the report,written by the U.S. Public Interest Research Group Higher Education Fund. The fees add to the mountain of debt many students already take onto get a diploma. U.S. student debt tops $1 trillion, according tothe Consumer Financial Protection Bureau. Student loans have surpassed credit cards as the biggest source ofunsecured debt in America, according to the CFPB, which regulatescards and private student lenders. Among the fees charged by Higher One, according to its website, isa $50 "lack of documentation fee" for students who failto submit certain paperwork. The U.S. Department of Education called the charging of such fees "unallowable" inguidance to financial aid officers issued last month. Higher One founder and Chief Operating Officer Miles Lasater saidin an email that the company takes compliance with the government'srules "very seriously," and officially swears that to thegovernment each year. "We are committed to providing good value accounts that aredesigned for college students," he said, and students mustreview the company's fee list when they sign up for an account. Hecited a study commissioned by Higher One that declared Higher One"a low-cost provider for this market." The same studyfound that the median fees charged to the 2 million students withHigher One accounts totaled $49 annually. Among the fees charged to students who open Higher One accounts:$50 if an account is overdrawn for more than 45 days, $10 per monthif the student stops using his account for six months, $29 to $38for overdrawing an account with a recurring bill payment and 50cents to use a PIN instead of a signature system at a retail store. Higher One has agreements with 520 campuses that enroll more than4.3 million students, about one-fifth of the students enrolled incollege nationwide, according to public filings and the U.S. PIRGreport. Wells Fargo and US Bank combined have deals with schools that enroll 3.7million, the report says. Lane Community College's president, Mary Spilde, said in aninterview that the real problem is a "lack of adequate publicfunding," which forces students to seek financial aid andcolleges to find ways to cut costs. "Many institutions are looking at ways to streamline and to dothings that we're good at, which is education and learning, and notbanking," Spilde said. Programs like Higher One's shift the cost of handing out financialaid money from universities, which no longer have to print and mailchecks, to fee-paying students, said Rich Williams, the report'slead author. "For decades, student aid was distributed without fees,"Williams said. "Now bank middlemen are making out like banditsusing campus cards to siphon off millions of student aiddollars." Students can opt out of the programs and choose direct deposit orpaper checks to receive their college aid, but relatively few do.The cards and accounts are marketed aggressively using collegeletterhead and websites carrying the endorsement of colleges.Higher One also warns students that it will take extra days if theychoose direct deposit or a paper check. In the end, students feel locked into accounts before they have achance to shop for a better deal, Parker-Milligan said. We are high quality suppliers, our products such as China Mobile Phone Flex Cable , Cell Phone Keypads for oversee buyer. To know more, please visits Mobile Phone Unlocking Box.
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