College Banking and Credit Card Agreements
As students begin college, they are often entering the financial ecosystem for the first time and may encounter new financial products and related advertisements from financial service providers in partnership with their schools. Policymakers, federal auditors, federal banking regulators, and the Department of Education (ED) have previously recognized and identified risks in practices related to college-sponsored financial products including deposit and prepaid accounts and credit cards.
This report reveals trends related to student deposit, prepaid, and credit card accounts offered and advertised to students through partnerships between colleges and financial service providers. It is informed by account agreements and data from 2022 through 2023, covering over 1.4 million such accounts. In addition to this year’s findings, the CFPB highlights other products and partnership between financial service providers and colleges which may create risks to students. This report also serves as the fifteenth annual report to Congress on college credit cards pursuant to the Credit Card Accountability, Responsibility, and Disclosure Act (CARD Act).