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If you are one of 570,000 college students that have a One Account federal loan that you opened between May 4, 2012 and December 19, 2013 through Higher One, Inc., you could be receiving a refund in the future. The company has been fined by the Federal Reserve and the FDIC, because they charged unnecessary fees to students.
Higher One, Inc. is a company that provides financial aid to students at many colleges and this aid can be used for more than tuition. Students have been able to use these funds for living expenses as well. Over the years, the funds have been issued on debit cards however the students were never given any information on how to access the money without having to pay any fees.
Higher One’s marketing practices have also been called into question, because they used college’s logos when promoting these packages. Many students felt that the colleges approved of this company and thought that it was safe to get a loan through them.
The cost of college is climbing every year, which means student loans are getting bigger as well. With the additional fees the students have had to pay to Higher One, Inc., their debt is higher than it needs to be. The U.S. Department of Education is currently trying to find ways to assist students from falling victim to any types of questionable actions in the future.
The current CEO of Higher One is adamant that the way money is distributed to students now is much better than it was during the time in question. Higher One Holdings Inc. is now looking to the future and their sale of certain business assets to Customers Bank. With this sale, the company can put all of this in the past and can look forward to new business opportunities.
Hopefully, after Higher One pays the fines that the Federal Reserve and FDIC have imposed, the students can start to worry about their course load and not any extra loan fees.
If you have questions or comments, please chat in the comments below or on the ChallengeStudentDebt Twitter handle.
If you feel you were defrauded by the school you attended or you are being treated poorly as a distressed borrower by your creditors, take the free challenge debt review to find out what options you have regarding your student loans.