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Bancorp Bank, an FDIC-insured institution based in Wilmington, Del., has terminated its relationship with Higher One. A spokesman for Bancorp Inc., the parent of Bancorp Bank, didn't immediately return a telephone call seeking further comment. Higher One has card agreements with 520 campuses that enroll 4.3 million students, according to a study by the U.S. Public Interest Research Group Education Fund, a student advocacy group. That's about one-fifth of the nation's higher-education students. Among the colleges that partner with Higher One are Liberty University, Miami Dade College, Texas Tech and Johns Hopkins University. The company has been criticized by student and consumer groups who say students are pressured into using its products because they receive pitches on university letterhead and believe the accounts are university-approved. They say students should be encouraged to shop around for a less expensive banking option. Some universities pocket a share of the fees that Higher One charges to their students. That gives them little reason to make sure students get the best deal possible, advocates say. Higher One says it has stopped signing new contracts that include revenue-sharing. "We commend the FDIC for holding Higher One accountable," Rich Williams, higher education advocate for U.S. PIRG, said in a statement Wednesday. "Student aid should not be a piggy bank for banks to dip into, especially when their practices are unfair or deceptive." Higher One's shares ended Wednesday down 38 cents, or 3.3 percent, at $11.13.
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