Isabella La Rocca has been waiting for her financial aid refund for more than a month.
Santa Rosa Junior College’s financial aid office told the 21-year-old she could expect her disbursement via the BankMobile app by Sept. 16 — a date that came and went, she said.
“When I logged into the account after updating and doing the new verification, there was nothing there waiting for me,” La Rocca said.
La Rocca is among the thousands of California college students who have been affected by a breach of the BankMobile app used by roughly 60 community college districts to issue school and federal financial aid and scholarships. Some universities also use the mobile banking system.
According to BankMobile communications with California community college officials, approximately 65,000 student accounts were impacted by data changes, roughly 1,000 accounts were accessed and about 400 accounts had financial aid funds stolen.
The financial aid disruption has set off a wave of desperation among community college students from Santa Rosa to Los Angeles who rely on the funds for school supplies and basic needs. Some students are rationing gas, forgoing textbook purchases or skipping meals as they wait for their disbursements, which may never come for the 400 accounts from which funds were taken.
BankMobile breach
Once school costs are taken care of, college students in California typically receive refund checks from their financial aid, scholarships or student loans during the first few weeks of a semester, depending on the type of assistance.
That’s around the time “unauthorized individuals” gained access to a “significant number of BankMobile student accounts,” according to a letter from Los Rios Community College obtained by EdSource.
BankMobile first changed its account verification process in July, leading to a vulnerability exploited to hijack and modify account information for student accounts, state community college officials said.
Some college districts, such as Los Rios, issued paper checks and directed students to file a claim with BankMobile.
In October, after being alerted of the security breach, the California Community Colleges Chancellor’s Office advised its college districts, including the Riverside and Foothill De Anza districts, to halt electronic payments through BankMobile.
Butte College officials said they didn’t know if compromised accounts belonged to students, but issued paper checks for its Oct. 8 disbursements, Action News reported.
Long Beach Community College distributed paper checks in person and by mail as well, The Viking News student newspaper reported.
Riverside Community College District switched to paper checks on Oct. 8 to make financial aid payments to about 3,400 students who normally receive payments via direct deposit, said John Geraghty, the district’s controller.
The district has since reverted to its standard process of direct deposit. Geraghty said the district was comfortable returning to direct deposit after BankMobile officials “disclosed information to us about security protocols that they’ve enhanced.”
Riverside students received their latest disbursement Wednesday, but students at other campuses are still waiting for their financial aid.
Los Rios, however, announced Monday it will transition from BankMobile to Nelnet for student disbursements and refunds. The district said it may continue issuing paper checks until “Nelnet is fully operational, and the process is working effectively and securely.”
In the meantime, Los Rios Community College directed its students to the college’s Basic Needs Center for support with food, housing, transportation or other essentials if there’s a continued delay.
Widespread impact across different campuses: food, gas, or books?
La Rocca at Santa Rosa Junior College said her financial aid pays for her tuition, transportation costs and school materials, while her part-time job covers her car payment, insurance and rent.
The delay has impacted her ability to pay bills, and is especially difficult given rising gas prices.
“I do rely on that money for transportation and books that I need,” La Rocca said. “I’ve had to come out of pocket for everything so far this semester.”
Julia Ramirez, an American Sign Language major at Los Angeles Pierce College, is on campus nine hours from Monday to Thursday. Without her financial aid, she said she’s weighed whether to buy basic necessities throughout the day, such as water and food.
“Now, I’m thinking about, ‘Is it worth buying this meal versus a textbook?’ ” Ramirez, 27, said. “I have to figure out what I’m spending my money on.”
Since the beginning of the semester, Ramirez has avoided buying her textbooks, which start at $64.
If and when students get their funds
Some students say they’ve been left in the dark about when, and if, they will receive their financial aid.
At Los Angeles Pierce College, some students say they have not received communication from the college’s financial aid office about the delays beyond an undated announcement that disbursements had been temporarily paused “due to unforeseen technical difficulties.”
Ramirez said she reached out to the financial aid office three times regarding the issue and was instructed to check back in two weeks. When she inquired two weeks later, she was told to check back in another week.
“They just have you going in circles, and I guess they don’t have answers either,” Ramirez said.
Although La Rocca’s refund is more than a month late, she has also not heard from her campus financial office at Santa Rosa Junior College. She said she intends to ask for a physical check, but it’s difficult with her work and class schedule. She attends classes four times a week at the Petaluma campus, 30 minutes away from the main campus where the financial aid office is located.
She said that the first thing she’ll do when she gets her check is fill up her gas tank.
And when her aid finally arrives, Ramirez said she is going to use it to buy textbooks and food.
“It’s a little sad that I have to pick between food or a textbook,” Ramirez said. “I feel like going to school is already stressful enough for students, and having to worry about eating on top of that is really stressful.”
EdSource reporter Michael Burke contributed to this report.
Sathya Chaib, a journalism student at California State University, Fullerton, and Emily Garcia, a journalism student at California State University, Northridge, are members of the EdSource California Student Journalism Corps.
EdSource is an independent nonprofit organization that provides analysis on key education issues facing California and the nation. LAist republishes articles from EdSource with permission.