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The ASPSU expressed dissatisfaction on Thursday of the administration’s decision to replace all student ID's with MasterCards and change financial aid disbursement methods. The new cards enable students to use MasterCards as debit cards to receive and spend financial aid disbursements on campus and wherever MasterCard is accepted. The new cards will be available in November.

Ryan Klute, the student body vice president, attended a project launch meeting on Thursday and expressed his concerns. "Students have not been sufficiently involved in this decision," he said, "There are many elements to this project that required student feedback before the decision was made." Klute said that the administration had not approached the ASPSU for feedback. In previous years, the ASPSU has successfully campaigned to remove credit card vendors from campus. "Student financial aid is held hostage by this program," said Klute, "Students with financial aid have no choice but to join HigherOne and use their financial services."

The "PSU OneCard" is offered by HigherOne, a financial service provider based in Connecticut. This card is the new PSU ID card used for access to the library, recreation center, secured building doors, Tri-Met passes, and other services. Students must activate their cards on a website before it can be used.

Optionally, the card connects to "OneAccount", a FDIC insured checking account available to all students. Previously, students chose between direct deposit and paper check. Under the new system, students choose between three disbursement methods: OneAccount, direct deposit, or paper check. All three options are coordinated by HigherOne. Students are required to activate their OneCard on a website for financial aid disbursements.

The lack of student involvement in the decision making process is not the only concern of Ryan Klute. "My top concern is education about the new system. Since this project has been hidden in the offices of the administration, rather than actively discussed amongst the student body, we will all have to work hard to get information out before the November start date,” he said, “I want students to be very aware of this new system and the potential risks involved.”

Of the potential risks, Ryan stated that “there is a possibility that students may overdraft their OneAccount checking account, which may result in overdraft fees or even the involvement of collection agencies.” The poster campaign presented at the meeting on Thursday by HigherOne seemed to focus more on activating the card and promoting their checking account, less on education about disbursement options and risks. In addition, Klute expressed concern regarding student choice. "Regardless of the banks nearby, students are, by default, customers of HigherOne and MasterCard," he said.

Students may also use their OneCard to spend financial aid money at millions of merchants that accept MasterCard and withdraw cash at specific ATM machines on campus. The HigherOne ATM machines will only be available on campus. The OneRewards program will reward students with points for shopping at certain stores. Students redeem these points for prizes, such as "X-Box games, Playstation games, and mini-fridges." In addition to increased student customers, merchants participating in this program have marketing exposure on the card activation website. HigherOne and PSU will generate revenue from OneCard usage through a revenue sharing agreement. Klute recalled that HigherOne was unable to provide information about where this money would go.

"The structure of financial aid is designed to provide funds for tuition, books, and living expenses; which leaves students with little to no disposable income," said Nicole Browning, the Multicultural Affairs Director of the ASPSU, "This program appears to encourage and reward students for spending their financial aid, which in most cases doesn’t cover their basic needs, on products promoted by merchants involved in the OneRewards program."

Now that the deal is final, ASPSU is pushing for education about the new program. "I want to make sure students are very clear about this new program," said Ryan, "I also want an explanation from the administration about why students were not involved in this crucial decision."

Contact: Tony Rasmussen, (503) 307-2700, aspsu@pdx.edu ASPSU Website: www.aspsu.pdx.edu HigherOne Website: www.higherone.com