If a student collected a college loan refund in a campus card account and transferred the money to an off-campus account, for example, transfer fees could eat into the balance.
The number of households tapping alternative financial services are on the rise, meaning that Americans are turning to non-bank lenders for credit: payday loans, refund-anticipation loans, pawnshops, and rent-to-own services.
Have you ever used a refund anticipation loan, or a refund anticipation check?
A new world of payday loans, tax refund loans, subprime mortgages and teaser-rate credit cards was born, just as real hourly wages, adjusted for inflation, were stagnating.
Unbanked and underbanked families rely heavily on alternative financial services such as check cashers, payday loans, tax refund anticipation loans, pawn shop loans and auto title loans.
Indeed, the refund loan business depends on people ignoring a truism of financial planning: Avoid tax refunds, because they represent interest-free loans to Washington.
Massachusetts Educational Financing Authority, $74.6 million of education loan revenue and refunding bonds.
Block has continued looking for ways to increase profits from its refund loan customers.
Like debit cards, the prepaid charge cards allow customers to draw down their refund loan proceeds as they make purchases.
The refund loan business, Block has said in securities filings and court papers, is aimed at low-income people.
