The Department of Education on Tuesday finalized a set of rules that will restrict certain banking practices for federal student loan servicers.
The restrictions, first proposed by the agency in May, create new standards for universities and lenders that partner with them. The rule bans ATM surcharges, overdraft and point-of-sale fees for students serviced by a financial institution on behalf of their school. Instead of nudging students towards a preferred institution, schools will have to present a "neutral" set of banking options to students, including preexisting accounts. Moreover, universities and colleges will have to ensure students banking independently from a school-sponsored institution will receive their funds in good time.