Every year, the U.S. Department of Education gives over $120 billion in federal grants, loans and work-study funds to more than 13 million college students, making it the largest provider of student financial aid in the country. Now, students may be given some of these funds on a debit card.
According to The Hill, the Department of Education plans to launch a pilot program which would place financial aid dollars onto debit cards for up to 100,000 students. Earlier this month the department began searching for a contractor to help with the program.
Currently, federal student loans and grants are distributed directly to the colleges and universities that aid recipients attend. If there is money left over after tuition is deducted, schools typically return these "refunds" to students in the form of checks or bank deposits to be used at their discretion.