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University officials say that their decision was motivated by convenience for students and their families. International students especially struggle with unreliable wire transfers, so credit card payment provides another option.
Since I work for Wells Fargo, I know that there are many education funding choices out there. And everyone needs to do what’s best for his or her own financial situation. So while credit cards are certainly an option, students should still seek out “free money” in the form of scholarships or grants. They also should consider applying for student loans, which may have lower interest rates or more flexible payment plans (like postponing payments until you’re done with school).
Even though I don’t have any tuition to pay at this point in my life, I’m always interested in finding out what students and parents think. So, let's hear it: How do you feel about putting college on a credit card?
I always pay my credit card on time. Also, I receive 1% cash back on whatever I use my credit card on. Since I receive 1% back; using my credit card to pay $5000 in tuition fees will result in $50 cash back. Though it would be dangerous should I forget to pay the credit card off. The school probably pays $50+ dollars to incur the transaction which is why they encourage using checks. I encourage students to pay with their credit card. It can help them build good credit.
Hey Jonathan--Thanks for sharing your experiences. So, question: once you put your tuition on your card, do you pay it all off right away, or do you pay it in installments? Just curious if you're paying interest on the amount and if it offsets the $50 cash back you get by charging it in the first place?
I definitely pay my card on time. It would defeat the purpose of earning $50 cash back if I had to pay interest on it. Putting it on the card gives me an additional month to make the payment and has helped me build good credit. I also try to pay the credit card as close to the due date as possible so that the $5000 can earn as much interest as possible in my bank account. And I always make sure I have enough money to cover whatever I'm going to charge on my card. Though it's tempting, I try to not spend money I don't have.
I'm impressed with how money-savvy you are, Jonathan! You're making money on this transaction twice--cash back from your credit card and interest on the amount in your bank account. How'd you learn such sweet skills? ;-)