<p>Someone was telling me that they put their kids tuition on their credit card that earns them miles and/or points and then pays it off as if they had written the check directly to the college (i.e., pay it off in full so as to avoid incurring interest charges). So I looked at Midd's website, but I can only find the option to pay by credit card under this FACTS payment plan. And while reading it, we are now considering doing something like a down payment and monthly bills (still while paying off the card in full each month).</p>
<p>However, I noticed this thing called a convenience fee in addition to the yearly service fee. However, I can't find where they give you even a clue what that might be. SO before I fill in all my information and find out I have to commit before knowing that information, I don't want to get billed for essentially asking a question. </p>
<p>Have any parents used these services specific to Midd? And do you have any clue what the amount of a convenience fee is? I am going to call the number, but just wanted to ask about personal experience in general with these things in case I end up needing to ask other things that I wouldn't have yet thought of.</p>
<p>The convenience fee is set high enough to recover the 1-3% that the credit card company (or member bank underwriting the credit card) holds back from the creditor. In this case, FACTS (acting in behalf of Middlebury) would only collect 97-99% of the cash billed to the card. The convenience fee serves to backfill that loss to FACTS/Middlebury.</p>
<p>Yes, you get to keep to credit card points/miles/cashback rewards, but at a cost that is higher than if you paid cash from a bank account. There is no free lunch here. Plus the large amounts billed to your credit card, even if paid-off in full each month, are still reported to the credit bureaus and alter you credit limit/line to credit balance ratio and can noticeably lower your FICO score.</p>
<p>Spoke to several people cause no one was posting here, and while credit card doesn’t seem very wise (especially if it’s to earn points for something like airfare - you could buy more than 3 flights over with that convenience fee), it does make sense to make monthly payments and have you money working for you instead of paid. Now., the question becomes, if you have it obviously, how MUCh money and is worth the hassle? That’s where we are now. Apparently, unlike some payment plans, all of Midds are paid in full by March so it’s only a 9 month plan if you start paying in July, (as in now).</p>
<p>I did the FACTS payment plan for a daughter at another college. I liked the idea that I could earn some interest while paying monthly. I was able to do the ten month plan. Now it just seems like a hassle to me with several children in college at once. I just suck it up and write the big checks just twice a year.</p>