PSU now comes with a bank account

A recent article in the Vanguard titled “New Higher One contract aims to address concerns” [Oct. 6] is bound to cause some controversy, as there have been ongoing protests and complaints against the banking institution every Portland State student is required to use.  According to the article, Portland State recently inked a new contract with Higher One, the group that currently disburses millions of dollars in financial aid to PSU students, after a long search process for another vendor that began last fall term.

The decision to stay with Higher One is not what people have the most concern about, however. In fact, I have never had a problem with the card myself. The biggest issue is that a OneCard is a requirement—not an option—for PSU students. It makes much more sense when you go to University of Oregon or Oregon State University because the majority of the students are traditional, young and just out of high school. At PSU, I find it rather pointless to require a 30-year-old PSU student who already knows how to manage their own finances to have another checking account. Moreover, I think it is just more practical to have a student ID not linked to a checking account.

There are a number of benefits linked with the use of Higher One account, and below I will to examine them  and explain the reasoning behind student concerns that are causing such controversy on campus.

Students have the quickest possible access to their financial aid.

Yes, perhaps waiting in lines for a paper check to deposit into your banking account takes longer than an electronically transferred amount through Higher One. We are not in the 1990s, I know, but unfortunately Higher One does not deposit the money until 10 days before the start of the term. However, most people would much rather receive the money sooner to buy books prior to class. This year, by the time I received money in my account, all of the used-edition books for my classes were already sold out. If I would have been able to manage my own money, I could have saved myself a few hundred dollars. So in terms of offering the quickest possible access, I am sure it is, but I would much rather be in control of when my money gets deposited into my account.

A student’s funds are safe with Higher One.

Are they? I thought they might be safer with a banking institution everyone has heard of instead.

Higher One can help with a student’s financial education through information provided on their Web site or the student’s online account.

Why should this be mandatory for a 30-year-old returning student who has multiple accounts he or she must already deal with?

So if Higher One seems like a good option, why is there a need to protest against it and why do so many students hate it? The answer is simple: fees.

The Higher One fees, as with most banking institutions, are unavoidable. But have you heard of Bank of America charging you an “abandoned account fee” of $19 per month if funds remain unused in their account? Or, do you receive a penalty for using your banking card as a debit card and not a credit card? How about a $25 replacement card?

The list goes on. This is the reason why there is such a desire to protest the Higher One banking institution amongst PSU students and students nationwide. The result of this however has not changed the outcome towards what most students want. However, PSU has not discontinued their partnership with Higher One. Instead, Eric Blumenthal, director of Portland State’s Business Affairs Office, said the decision was not simply to continue doing more of the same, but to realize the best option for Portland State students.
According to Blumenthal, the best option lies with a banking institution that has a rating of “C” on the Better Business Bureau of Connecticut. According to their Web site, the reasons for such a low rating include a “number of serious complaints filed against the business.” A total of 195 complaints about Higher One, Inc. occurred in the last 36 months.

Need I say more?