Blumenthal Statement on Education Department’s Increased Protections for Financial Aid Students

(Washington, DC) – U.S. Senator Richard Blumenthal (D-Conn.), Ranking Member of the Senate Commerce Subcommittee on Consumer Protection, issued the following statement today on new regulations announced by the U.S. Department of Education that will increase protections for students on financial aid:

These final regulations will provide critical consumer protections for students and bring an end to pernicious practices in the campus banking industry. Students should never be forced to navigate misleading marketing schemes and predatory fee structures in order to access their financial aid. Campus banking companies will no longer be able to steer students into opening unnecessary bank accounts to receive their funds, and contractual agreements between institutions and their banking partners will no longer be hidden from students and their families. I commend the Department of Education for taking this much-needed step to protect students and their financial aid funding.”