WASHINGTON, Aug 8 (Reuters) - Two banks have agreed to pay penalties to settle charges by U.S. banking regulators alleging they engaged in unfair and deceptive fee collection practices for student debit card holders, the Federal Deposit Insurance Corp said on Wednesday.

Higher One Holdings Inc, of New Haven, Connecticut, will pay a penalty of $110,000 and $11 million in restitution to approximately 60,000 students, the FDIC said. Bancorp Inc of Wilmington, Delaware, will also pay a $172,000 civil penalty.