Student financial aid: debit cards.

Existing law provides for the missions and functions of the private and public segments of postsecondary education in the state. Existing law establishes various student financial aid programs for students attending all segments of postsecondary education. This bill would require the Board of Governors of the California Community Colleges and the Trustees of the California State University, and request the Regents of the University of California and the governing bodies of accredited private nonprofit and for-profit postsecondary educational institutions, to adopt policies to be used for negotiating contracts between their postsecondary educational institutions and banks and other financial institutions to disburse a student's financial aid award and other refunds onto a debit card, prepaid card, or preloaded card that best serves the needs of the students. The bill would encourage postsecondary educational institutions to consider specified issues in adopting their policies. The bill would require the policies adopted to ensure that contracts between postsecondary educational institutions and banks or other financials institutions to disburse a student's financial aid award do certain things, including: ensure that a student does not incur any cost in opening the account or initially receiving the debit card, prepaid card, or preloaded card; ensure that a student has convenient access to a branch office of the bank or an automated teller machine, as specified; ensure that the debit card, prepaid card, and preloaded card can be widely used; and to not market or portray the account or debit card, prepaid card, or preloaded card as a credit card or credit instrument, or to subsequently convert the card to a credit card or credit instrument.