Los Angeles Business Journal

Student Loans to Be Channeled to Green Dot Card

By Deborah Crowe Originally published August 23, 2012 at 3:31 p.m., updated August 24, 2012 at 12:14 p.m.

Green Dot Corp. is partnering with student lender Sallie Mae to market a prepaid card to students who do not have a bank account.

Under the arrangement, money from a Sallie Mae-issued student loan that is allowed be used for student expenses such as textbooks can be loaded onto the Monrovia’s company’s My Flex prepaid MasterCard.

The partnership may help Green Dot counter a loss in sales of its cards at major retailers where it is losing its exclusivity arrangements.