Building Trust Between Colleges and Parents
Presidents of colleges and universities love to talk.They love to talk about the schools they lead, and why they are great. They love to talk about problems facing America and the world, and how U.S. higher education is producing the next generation of leaders to solve those problems. And they love to talk about the federal government, and how it is not spending enough money in support of colleges and universities.Actually, college presidents love to talk most of the time. When it comes to certain subjects, they grow quiet.
In favor of a “College Buyers’ Guide” by the Consumer Financial Protection Bureau
pic by flickr user nesster (cc license) The Consumer Financial Protection Bureau (CFPB) continues its push for sunshine/transparency for financial organizations’ relationships with institutions of higher education. In a blog post last week, the CFPB discussed how many of these arrangements work:1. Direct payments for using school logos: We found several agreements where a financial institution offers a licensing fee in order to use a school’s logo to market its financial products. (In 2008, Congress restricted this practice for student loans, but not for other financial products.) For example, we found an agreement which provides $25 million to a university for use of the school’s logo, among other benefits.2. Bonuses for recruiting students: Other agreements provide bonus payments based on whether students sign up for a financial institution’s student checking account marketed on campus. For example, one agreement paid a university an upfront payment of $400,000 and an additional bonus of upwards of $200,000 each year if enough new students signed up for the accounts.3. Discounted prices in exchange for marketing access: Some colleges receive discounted – or even completely free – services in exchange for allowing a provider to market financial products to students. For example, we found many agreements where a financial institution charges a university to transfer loan and scholarship funds to students.However, some school officials have told us that these charges may be heavily discounted, since these agreements provide the financial institution with unique access to market to students receiving financial aid. This gives the financial institution a foot in the door to generate significant revenue in fees from students, making it worthwhile to provide discounted services to schools. The CFPB went on to praise the voluntary disclosure of such agreements as a commitment to transparency and informed consumer choice. College Parents of America praises these efforts as commonsense, consumer-friendly steps that these institutions can take. Thankfully, college financial transparency has increased significantly since the days of on-campus Frisbees, T-shirts and candy in exchange for college credit card applications. Transparency in college isn’t yet perfect, however.
Humor – Helicopter Parents Are Useful After All
The tenth comic in the College Parents of America Humor series is now available on collegeparents.org. This comic, made in a collaborative act between College Parents of America and Hector Curriel, is a nod to helicopter parents everywhere.
Discounts or Scholarships? 50% off a College Education?
It may sound strange, but if your family received a “scholarship” to buy a car would it lead you to buy it? We encourage college parents to consider the implications for your own college admissions experience and be careful to understand the difference between a true scholarship from what would otherwise be viewed as a […]
