Paying for College Tuition with Credit Cards Can Be Costly
Despite the convenience that comes with paying for college tuition with a credit card, the choice to do so could be costly.
According to a new research study, the average convenience fee for colleges that accept credit cards is 2.62%. This fee is lumped into your balance so it can cost even more with interest payments if not paid in full by the end of the month.
The reason why colleges charge convenience fees is because they are charged a fee from the credit card company. It might be labeled “convenience,” but it is really designed to ensure that the school makes their money even if a credit card is used for payment.
The survey included a total of 300 schools, including the 100 largest public, private and community colleges in America. The highest convenience fee on the survey was 2.99%, charged at St. Joseph’s University in Philadelphia, Western Kentucky University and Roger Williams University in Rhode Island.
In contrast, some colleges that do not charge any convenience fees. A number of these fee-free institutions were community colleges. In fact, only 12% of community colleges on the survey charge a fee when students pay for tuition on a credit card.