Wtf?
The Chase card that was issued last year was a pain in the ass to get a hold of, but, once in possession, it was actually a valuable asset, it turns out!
Starting in the Fall semester of ’09, student’s of the DCCCD program are forced to use the “DCCCD Money Card” from Higher One, and we couldn’t be unhappier. The fact of the matter is, there is no other alternative, but – I question why are fees applied to an otherwise flawless system?
Before the credit cards and Internet, people were given checks for their financial aid that could be cashed almost anywhere, and then used to handle college expenses – tuition, rent, car repairs, and a number of other costs that may be incurred during a person’s educational career. A person with a limited income gets the financial aid, has a little left over, and pays off some ominous bills is the usual scenario. In the past, it has been very straightforward as to the receiving of these monies.
In the Spring semester of 2009, however, Dallas County Community Colleges introduced a new card for students to receive their disbursments. Higher One somehow took over the old Chase card system of disbursements, and fees reminiscent of the traditional bank run rampant. Where the formerly implemented Chase card had no restrictions on daily withdrawal limits, numerous branches with ATMs, and no fees for anything, the new Higher One account presents many obstacles, some extreme, to the student not wishing to spend any more than she/he has to. Below is a paraphrasing of the limitations of the new DCCCD card:
1) There are only 3 locations that money can be withdrawn without an external ATM fee – this fee is rather small, but is very frustrating when calculating balances, as it rarely included in receipts, not to mention the other fees in this program that produce well above the amount of income required to keep this program afloat.
2) There is a 50 cent “merchant fee” for every debit transaction – this means that using the PIN number for the card costs fifty cents every time. Why? It seems to me that using the debit feature of the card should be rewarded, as the transaction is immediate and reflects in the statement very quickly. My only guess is that the Higher One company doesn’t WANT the numbers to reflect immediately, bringing us to point #3.
3) A percentage of money withdrawls and overdraft fees – A typical bank lets you go over the spending limit and then charges overdraft fees while at the same time keeping your online bank information information not up-to-date. The old Chase system of financial aid would not let you go over your limit, which was fine with me (and I’m sure everyone else), but this new system allows you to supercede your allowance, which in turn allows the “bank” to charge you a $35 dollar overdraft fee – which is nothing more than a computer running your numbers over an algorithm. Adding insult to injury, a withdrawal from an ATM is subject to a fee, which is a percentage of the amount taken out. This is the typical scenario of recipients of financial aid – with most pulling money out to cover overdrafts in other bank accounts and using the leftover money to fight credit card debt and bank account overdraft fees.
4) You cannot put the money anywhere else – You have to set up the account for the financial aid. There is no choice. You have the option of getting the money placed into an account as described above, or having it sent to a “regular” bank account, which also has slavery-reminiscent policies. However, the regular banks have ATMs all over town, and are the more wiser choice – saving at least a dollar-fifty on each transaction. But here’s the catch – you can actually have your money sent to a bank account of your choosing if you request it, but then: you have to MAIL IN the routing and account numbers, supposedly for your security. Lemme ask you this: Are you worried about security when you’re paying your cable bill online? IT’S THE SAME THING. This option should be available online. The only reason it is not available online is because it discourages users from taking advantage of the feature. Might I also add that most people seeking financial aid are BROKE, and therefore, when the money comes, it’s gone – and once Higher One gets the deposit into your account, you no longer have the option of moving it to another location without an exorbitant fee.
Ok, I’ll stop my rant here.
I’m just pissed off because right now I’m losing about 100 dollars every time I get financial aid to these guys, and really have no way of fighting it. I have no alternative ways of receiving my money, and I get charged a fee every time I do any kind of regular transactions. This, to me, is another example of the rich taking advantage of the poor, and had I a high-class lawyer, I could take on this behemoth.