Some college students will be able to use their allotted financial aid by swiping a debit card instead of waiting for paper checks to come to their dorm rooms or houses after Blackboard Inc. this week launched a student payroll system.
Officials from Blackboard, the largest provider of learning management systems (LMS) software in K-12 schools and colleges, said the Blackboard Pay program would not charge overdraft fees or other penalties common among banks and other companies that issue debit cards.
Blackboard is teaming up with First Data and Discover to distribute the cards, which students will use to spend the per-semester or annual aid they are granted through federal or private loans. Student card holders will be able to use the Blackboard Pay cards to get cash from ATMs with the Pulse, Allpoint, or STAR Network logos, among other companies.
“Given the high fees normally associated with other payment card products, we think students and institutions will benefit from a card-based disbursement program that is rich with features,” said David Marr, president of Blackboard Transact.