TEXAS STATE TECHNICAL COLLEGE AND TEXAS WOMAN’S UNIVERSITY TO USE HIGHER ONE’S ONEDISBURSESM REFUND MANAGEMENT SERVICE

Higher One to Provide Comprehensive Refund Management Services That Reduce Costs and Increase Student Services

NEW HAVEN, CT, August 29, 2005 – Higher One, a leading provider of customized financial services dedicated exclusively to the higher education market, today announced that four campuses within the Texas State Technical College system and Texas Woman’s University (Denton, TX) have signed on to use Higher One’s OneDisburse SM Refund Management Service. The program will enable the universities to save substantial costs and increase service by having Higher One handle all refund disbursements, related exception handling and customer service. Both universities will implement the program through a new co-branded “refund card,” which will also provide students with use of a free FDIC insured checking account called the OneAccount.

“We are thrilled to sign on Texas Woman’s University and four campuses within the Texas State Technical College system,” said Dean Hatton, President and CEO, Higher One.  “The new partnership brings us to a total of ten schools within the state of Texas and 31 schools across the nation.  Word is spreading that Higher One’s services not only save schools money, but also enhance the services these schools can now offer their students.”

Texas State Technical College ’s Harlingen , Marshall , Waco , and West Texas campuses plan to implement Higher One’s OneDisburse SM Refund Management Service through the Tech OneCard which will streamline the entire disbursement process for both the college and the students. OneDisburse includes the handling of all disbursements, customer service, exception handling, reconciliation and other time consuming functions – eliminating many costs associated with refund delivery for the college and increasing customer service for students.

The Waco campus plans to launch before Fall refunds and the Harlingen , Marshall and West Texas campuses are expected to launch by January 2006. Texas Woman’s University expects to begin operation of the new electronic funds disbursement, card and banking program in the Fall 2005 term.

Higher One’s OneDisburse SM Refund Management Service is more than just payments; it streamlines the entire disbursement process. OneDisburse includes the handling of all disbursements, customer service, exception handling, reconciliation and other time consuming functions – eliminating many costs associated with refund delivery for the school and increasing customer service for students. Higher One’s service is the only comprehensive refund management solution available today and features no setup costs, minimum involvement with schools’ IT systems, and a unique revenue-sharing benefit for the school. With OneDisburse students can choose any of three options to receive financial aid and other refunds: direct deposit to the free OneAccount checking account, ACH to another bank checking account, or a paper check. No matter which method the student uses, Higher One handles the entire process, making the payment and managing any associated exceptions or customer service needs.

Higher One provides every client with program management to ease the setup process. Once up and running, Higher One services including the management of student refund preferences; collection and archiving of ACH authorization forms; exception handling; refund returns; rerouting of checks; refund reversals; reconciliation and archiving; customer service; and online reporting of refund statuses.

Higher One offers two versions of its service: OneDisburse ID SM and OneDisburse Non ID SM. OneDisburse ID is a refund management program that is provided with a card that also serves as the Campus ID. The program is fully integrated with the campus card system. OneDisburse Non ID is a refund management program that is provided with a co-branded "refund card" that is not integrated with the ID card system. OneDisburse is available to smaller institutions - 5,000 students or fewer - through the non-co-branded "Easy Refund Card" platform.

Higher One has been providing Refund Management services to colleges and universities across the US since 2002. Higher One’s program at Sam Houston State University in Huntsville, TX generated $240,000 in net cost avoidance in the first semester alone, and after subtracting the initial costs of establishing a card office – produced about $400,000 in gross cost avoidance for the year. The State University of West Georgia and Kennesaw State University have both documented substantial, measurable impacts on the institutional operations and were presented with the “2004 Best Practices Award” for their implementation of Higher One’s Refund Management service by the State University System of Georgia Board of Regents.

More than 31 Colleges and Universities across the country have signed with Higher One to use the company’s Refund Management Services.  Since September 2002, Higher One has helped its clients disburse almost $700 Million dollars through more than 475,000 individual payments.

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About Higher One

Focused exclusively on higher education, Higher One provides refund management services to higher education institutions and banking services to members of their community through a card based solution. Higher One's integrated solution helps universities reduce administrative costs, streamline business processes, create new revenue streams, increase student customer service and strengthen the campus community. Higher One's refund service, OneDisburse, provides students with more choice and better service for receiving financial refunds. Higher One also offers a suite of banking services called OneFinance, which includes the OneAccount, a no minimum balance, no monthly fee checking account, the OneCard, a Debit MasterCard® card for ATM withdrawals and purchases, and exclusive features such as "Send Money", Easy Refund, and Campus Autoload for stored value programs.  The OneFinance and OneDisburse solutions can be integrated with the institution's ID card or provided through a separate "refund only" card.

To date, Higher One has has helped its clients disburse almost $700 Million dollars through more than 475,000 individual payments. More than 250,000 students, faculty, and staff at distinguished public and private universities use Higher One's services through their ID or refund card. www.higherone.com.