Credit card fees for college students who charge tuition

07.02.09
By Sarah Beldo

No one ever claimed that a college education came cheaply. But the cost of paying for college is growing even higher for some students, as more universities levy extra fees on those who use credit cards to pay their tuition.

A report in USA Today says that the University of Southern Maine, George Mason University, Northwestern University, Wichita State and the University of Virginia are among the many colleges that now charge a processing fee for using a credit card.

And figures from the National Association of College and University Business Officers show that the proportion of universities with similar policies rose from 14 percent to 26 percent between 2003 and 2007.

While students and their families may be angry about the prospect of paying fees, consumer advocates have long been worried about students' rising credit card use.

In recent years, the amount of credit card debt carried by the average college student has grown steadily higher, as plastic becomes the preferred form of payment for everything from books to meals.

Student loan company Sallie Mae's 2009 report on student credit card use indicated that the average undergraduate will leave school with $4,100 in credit card debt. This is a 41 percent increase on figures from 2004.

And, according to Sallie Mae's figures, 30 percent of the students they polled admitted they use their credit cards to pay for tuition.

Concerns about the dangers of young Americans falling into credit card debt at an early age prompted lawmakers to address the issue within the credit card legislation passed earlier this year.

The bill signed by the president states that credit card companies cannot issue a card to anyone under 21 unless they provide proof they can repay it or get a co-signer.

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Levels of student credit card debt are rising