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Financial aid disbursement company goes 'Higher' following IPO

Wednesday, February 23, 2011

Analysts say Higher One poised for big things, but concerns over fees loom

As financial aid disbursement goes, newly-minted public company Higher One may be positioned to school the industry.

The firm’s $100 million initial public offering on June 17 was well received by analysts, who hail the New Haven, Conn.-based company as an innovator in payment processing in a space still dominated by manually intensive processes.

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Higher One, a payment services company focused on higher education, has earned integration certification with Banner Digital Campus system with both of Higher One’s product offerings–the CASHNet suite of payment processing solutions and OneDisburse Refund Management service.

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Grants ranging from $2,000 to $5,000 are available to colleges and universities as part of Higher One’s financial literacy initiative designed to promote personal money management for college students.

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Higher One expanded its checking account options for college students. Previously checking accounts were only offered to current customers but new customers can now have immediate access to three checking account choices tailored to suit the banking behavior of college students.

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Higher One announced that it has added more than 25 new schools that will utilize its refund disbursement services and renewed contracts for 10 existing customers during the fourth quarter of 2011. The company now services about 200,000 more students.

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