Students flooded the June 3 Foothill-De Anza Board of Trustees meeting to express grievances over the colleges’ contract with Higher One, the schools’ financial aid disbursement service provider.
Students urged trustees to negotiate a one-year renewal contract with Higher One instead of a three-year renewal to allow sufficient time to look for more equitable service options.
Preceding the student presentations, Kevin McElroy, vice chancellor of business services, presented the contractual changes with Higher One, including eliminating many student fees and changing the district’s payments from a per-student system to an annual flat fee. McElroy said changing the payment system will save the district about a third of what it paid over the previous three-year contract.
Vincent Mendoza, De Anza College’s outgoing student trustee, said he was dissatisfied with Higher One and said students are unaware they can incur fees simply by typing in their PIN rather than signing for their purchases.
He acknowledged that planning and awareness can prevent most charges, but said that expectation is unrealistic since most students who have just started college have not yet gained financial literacy.
Other students said inadequate access to Higher One ATMs compel students to use foreign ATMs which makes them liable for more fees.
Mark Johnson, a veteran and disabled student at De Anza, said the fees may not be very significant, but every penny counts for students on financial aid, and the current service “adds on burden to those least able to pay.”
The Board of Trustees voted to maintain the integrity of the contract because of the inability to nullify the recently renewed 3-year contract. Bruce Swenson, a board trustee also motioned to form a management team and a student committee to communicate grievances with the company and renegotiate contract in three years.