As the Higher One program, which will ultimately manage the university’s financial aid refunds and payroll services, develops throughout campus, students are questioning the role of the program and its possible burdens on students themselves.
After partnering with the university, Higher One mailed students a “My Lion Card,” which is designed to offer students another option when it comes to receiving refunds.
Former Student Government Association President Branden Summers has been vocal about his distaste for the Higher One program. Summers said that the shiny card being mailed to students is confusing and contains hidden fees which are only noticeable when researched.
“There is a 50 cent fee for every debit card purchase,” said Summers. “Students can avoid the 50 cent fee if they swipe their card as credit, but they might not realize that unless they read the fees disclosure on the website, which requires some searching.”
As confirmed by SGA Senator Aaron Johnson, there is a $2.50 withdrawal fee for using non-Higher One Automated Teller Machines plus that particular ATMs withdrawal fee.
Johnson, however, said that there will be three Higher One ATMs on campus: one in the university’s Controller’s Office, as well as one in the Sims Memorial Library and one in the War Memorial Student Union.
The issue, as Summers notes, is that none of the ATMs will be open 24/7, causing students to use other ATMs past office hours and imposing fees on students’ balances. Johnson said the university is working on a location, which will provide a 24-hour ATM service.
According to Summers, if students over withdraw from their account, they will be charged $29, and if a student loses their “My Lion Card,” they will pay a fine of roughly $20 to replace it.
However, Controller Nettie Burchfield said the fees are not hidden and said that the Controller’s Office has created a web page specifically for student refunds, which includes information on any fees that could apply to students and how to avoid them.
Summers asserts that students were not asked in advance what their opinions were on the Higher One program and are indirectly forced into the program, saying, “In my opinion, a choice would be allowing a student to decide what financial institution they want to use.”
Johnson said the Higher One program is just another option for financial aid refunds and payroll services and not meant to burden students.
“You have three different options. Currently, you either have direct deposit or you have a check sent to you,” said Johnson. “With Higher One, you have the Higher One account, direct deposit or a check. You have that added option.”
Johnson said that in order to adhere to state law, Higher One must send students their refund check, at no cost, after 21 days if no actions are taken, but students will continue to be hammered with Higher One emails and mail.  
Another inconvenience of the Higher One program pointed out by Summers is the company’s push for students to choose the “My Lion Card” option rather than the direct deposit or mailed check options.
“For those who like direct deposit, Higher One doesn’t make it easy, as you have to complete direct deposit information online then print out the paper and either mail it or fax to Higher One’s central office,” said Summers. “It’s as if they make it time consuming to ward off students from doing direct deposit.”
Summers said that he decided to choose the mailed check choice because it was the simplest of the three.
“After much frustration I just decided to have the check mailed to me. That way I deal with Higher One as little as possible,” said Summers.
As for an alternative option for students who may be receiving refunds or on the university’s payroll as a student worker, Burchfield said there is no opting out of the system.
“Students cannot opt out of the program, but can certainly opt out of using the banking services by choosing the option to have their refund direct deposited to an existing bank account or sent by check,” said Burchfield.
Not adhering to the Higher One banking services and choosing to have money direct deposited or sent through a check in the mail will take more time, according to Johnson.
“If you want direct deposit, you have to reset up your direct deposit with Higher One,” said Johnson. “Direct deposit, you’ll wait about 2-3 business days for the money to go through. You’ll also wait with the check.”
Meanwhile, the university is undoubtedly benefiting from the private company’s takeover.
According to Interim Vice President for Administration and Finance Sam Domiano, the university is not generating any revenue from the program, but it is saving money.
“There will be some costs savings resulting from a reduction in costs associated with printing and processing paper checks,” said Domiano.
Higher One is no stranger to news coverage. Back in April 2012, the Federal Deposit Insurance Corporation announced an $11 million civil penalty and restitution settlement with the company and its bank affiliate, at that time, for alleged “unfair” and “unsafe” practices involving overdraft fees imposed on college students.
As the settlement stated, Higher One was “charging student account holders multiple nonsufficient fund fees from a single business transaction; allowing these accounts to remain in overdrawn status over long periods of time, thus allowing NSF fees to continue growing; and collecting the fees from subsequent deposits to the students’ accounts, typically funds for tuition and other college expenses.”
Domiano said the university was aware of Higher One’s past issues and scrutinized the company beforehand.
“Staff was very diligent in ensuring that such concerns were thoroughly vetted, as well as ensuring that the program provides refund options to students that are free of charge regardless of the refund option – paper check, ACH to personal banking account or a Higher One account,” said Domiano.
Burchfield said that the company’s past issues should not deter students from creating accounts or sending direct deposit information.
According to Burchfield, the university must follow a strict list of rules and regulations when dispersing payroll, while Higher One must follow even stricter regulations. Higher One adheres to guidelines set by the FDIC.
“Due to their contracts with higher education institutions and bank partners, they are required to comply with Title IV of the Higher Education Act of 1965 (Title IV), the Family Educational Rights and Privacy Act of 1975, the Electronic Fund Transfer Act and Regulation E, the USA PATRIOT Act, as well as the Gramm-Leach-Bliley Act of 1999,” said Burchfield.
Regarding Higher One’s profit from the contract with the university, Burchfield said the university does not know the company’s profit margin.
A tentative date has not been set yet for when the university will switch payroll services to the Higher One program, according to Burchfield.