Credit Card News

Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Products » Feds Seek Input on Safe Student Scorecard

Feds Seek Input on Safe Student Scorecard

Add to Favorites:

The Consumer Financial Protection Bureau (CFPB) is creating a tool to help colleges and universities evaluate financial products before they decide which companies to partner with.

The Safe Student Account Scorecard was designed to provide higher education institutions with information about fees, features, and other aspects of a financial product before signing a sponsorship agreement. CFPB director Richard Cordray explained that the government’s intention is  to help young people learn how to manage their money effectively while they are still in school.

College card agreements on the decline?

Recently, the CFPB reported that there had been a 70% drop in agreements between credit and debit card issuers and higher learning institutions. However, Cordray said the drop could simply be the result of financial institutions making deals that don’t require disclosure.

Many colleges and universities still partner with banks to offer their students financial products. The CFPB said that 40% of college students go to schools that have exclusive agreements with certain banks to provide students with debit or prepaid cards. A CFPB study showed that students who receive financial aid are the most likely to use financial products endorsed by their school.

The Credit CARD Act of 2009 (CARD Act) placed restrictions on the marketing practices financial institutions could use on campuses. However, these applied to credit cards, not debit or prepaid cards.

Exclusive deals between banks and colleges often allow the sponsoring bank to promote their credit, debit, or prepaid cards to students. Often, the bank provides the cardissuer with the college’s logo. Sometimes college student ID cards are linked to the partnering bank, doubling as a payment card. The CFPB reported that banks sometimes pay colleges to use their trademarked images, or offer bonuses if a certain number of students sign up for accounts. Discounted or free banking services may be offered to schools as compensation for letting the bank market to students on campus.

Call for input

Through March 16, 2015, the CFPB is accepting consumer input about the new Safe Student Account Scorecard. They are asking for comments from students and parents, as well as the general public.

The Scorecard asks financial institutions to provide schools with clear descriptions of the fees and features of their products, full disclosure about their marketing practices, information about how much the financial institution earns from student accounts and how much money they give to the school, and an annual summary of the fees charged to account holders.

Schools would be able to adapt the Scorecard to their specifications. For more information about students, colleges, and financial products, see

Add to Favorites:

Related News:

Financial Advisors’ Top Money Tips for College Grads
Financial Advisors Top Money Tips for College Grads

By Elizabeth Nelson, Posted: May 22, 2015

As college commencement ceremonies come to a close across the country, newly minted graduates will flood the job market, ready to begin working to pay off student loans and reaching other financial goals. Continue reading
CFPB Takes Campuses to Task for Secret Credit Card Contracts
CFPB Takes Campuses to Task for Secret Credit Card Contracts

By Dar Dowling, Posted: December 30, 2015

When students apply for a school-sponsored credit card they may think they don’t have to read the fine print, but that might not always be the case. Continue reading
Students Looking to Sharpen Financial Skills
Students Looking to Sharpen Financial Skills

By Dar Dowling, Posted: September 21, 2016

School days are upon us and financial literacy is on students'minds, according to the U.S. Bank Student and Personal Finance Study. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
You could turn $200 into $400 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
No Annual Fee
For Bad Credit