Sacramento, CA – A bill to protect students’ financial aid from being nickeled and dimed by bank fees has passed the State Assembly and now moves to the Senate. Assembly Bill 1162 introduced by Assemblymember Jim Frazier (D-Oakley) requires college boards to adopt policies that best serve the needs of students when negotiating contracts with financial institutions.
Recently, colleges have outsourced financial aid distribution to banks and other financial institutions in order to cut costs. As a result, students have ended up bearing the cost directly through high bank fees.
“As a small business owner for 23 years, I understand that every dollar counts especially for students who are working their way through college,” said Assemblymember Frazier. “Student’s financial aid money should go towards their education, not to fatten the pockets of big businesses.”
AB 1162 has recently gained backing from Consumers Union and the California Student Aid Commission. Early last month, Congressman George Miller (D-Contra Costa) commended Assemblymember Frazier for his efforts to protect students.
“I applaud Assemblymember Frazier for examining this important issue,” said Congressman Miller. “I look forward to working with him on this important matter to students and families.”
To contact Assemblymember Jim Frazier please visit his website at http://www.asmdc.org/members/a11/ or call his District Offices at 707-399-3011 or 925-778-5790, or his Capitol Office at 916-319-2011.