<p>"Many schools charge a special fee for using plastic to pay tuition, which could add up to an extra $3,000 over four years for a private school student. That's in addition to whatever interest rate may apply to the balance. These convenience fees average about 2.62%, according to CreditCards.com, and cover the servicing fees that credit card companies charge." ...</p>
<p>Actually, many schools no longer take credit card payments for tuition.</p>
<p>This is a non-story. Every college that takes credit cards spells out what the upcharge is, so people can decide for themselves if it’s worth it. Where’s the “controversy”? </p>
<p>Both schools I paid tuition to this year had no surcharge, so it made sense (and cents) to pay by credit card. I now have many frequent flyer miles and it was a lot easier than sending a check or wiring funds.</p>
<p>We asked at S1’s university and there was a surcharge that did not make it worth it. We also asked if there was a discount for paying all four years in advance (we wishfully thought maybe 10%). They said that it would only lock in the tuition at the first year level (their tuition traditionally had been going up around 3% a year).</p>
<p>As a frequent flyer, the rule of thumb is that 25,000 miles (typical for a domestic ticket) is worth about $400. </p>
<p>My kids’ schools are roughly $60,000 and they charge 2.5% (I might be off - I did the calculation once and it wasn’t worth it, so I never bothered to look it up again). So that’s an extra $1,500, which would get you 60,000 miles which is 2 tickets with a bit of leftover. $1,500 for 2 free domestic tickets is a rip-off if I could get them for $800. </p>
<p>But if there is no surcharge, that’s 2-3 tickets.</p>
<p>I’ve seen between 2 and 2.5% for credit card payment of tuition and other student bills.</p>
<p>However, the schools my son is looking at have 10 month tuition payments, so the point of spreading out the charges over a longer time is a bonus for us. I think it is a $60 flat fee. Probably will let them draw directly from our savings or checking account if that is available.</p>
<p>I charged 4 years’ tuition and fees for my D’s schooling - her university did not charge any additional fees for using a credit card. It was great! Convenient and yes, I earned several frequent flier tickets in the process.</p>
<p>Son’s school does not have a surcharge, and I’m earning points. I told my husband I have my sights on Hawaii in four years :)</p>
<p>Yes, twoinanddone, of course it’s worth it if there is no fee. </p>
<p>But there’s no great secret, which is why the thread title is misleading. It doesn’t “cost more than you think.” It’s spelled out on every college’s website if they take credit cards and if so, what the surcharge is. </p>
<p>My D’s college (a large state flagship) does not charge anything for paying with a credit card, so it’s a very easy decision to use the credit card. My friends who have kids at privates all say their kids’ schools have an upcharge such that’s it’s not worth using the plastic.</p>
<p>My kids’ college doesn’t take plastic. But they do permit payments over 10 months, so I won’t complain.</p>
<p>I would have loved to use credit cards to pay for my kids’ schools, if there was no fee. But I don’t think colleges SHOULD do that, then the school is paying the fee and that money is only rewarding a few families.</p>
<p>If they take plastic with no charge, then they should offer a discount for cash, customers should be requesting this. The charge for offering plastic as a vendor is not insignificant. I get 10% off for cash at my local asian store LOL, and at the karate school. When we had finished haggling for our last car we were still able to pay 5K on the CC (we get 1% back). </p>
<p>I charged for both of our kids whenever we could as there was no surcharge. There was a minimal charge for having payments stretched over the term, but it made it easier to draw from current earnings and not as much from savings when we stretched out the payments. Over the years we paid for our kids tickets, we got cash back on our credit card or mileage points toward flights. Both were useful and made is SLIGHTLY less painful to pay for the college expenses and tuitions. We are SO GLAD to be done!</p>
<p>Every place that charges a fee for credit card payments has indicated the charge so there have been NO surprises around here about fees attacehd to credit cards. We will be charged 3% for charging our travel to our CC but it will provide us with trip interruption and cancellation insurance, so we think it’s worth it, especially since there is a large upfront cost for the trip and it will become nonrefundable long before the trip starts. (My folks aren’t getting any younger either and we have some health issues that COULD flare up and cause problems and make us unable to fly.)</p>
<p>Many schools have relationships with banks now for student ID cards. Those banks are probably discounting the surcharge to the universities/schools or even waiving them as the other arrangement is so profitable to the bank (and it is). The schools may also feel the fee, if there is on, is worth it because they are paid earlier (not over 10 months or so), there are no collection fees, bad check charges or employee costs for processing paper payments</p>
<p>My brother owns a business and he happily eats the 2% or so charge for credit cards because they are so much easier to deal with than bounced checks and collections. A cash discount wouldn’t be 10%, but more like 1%</p>
<p>I sometime get discounts for paying cash for large purchases, like not being charged our 4.5% excise taxes or similar. No U has ever offered me a cash discount. </p>
<p>My D’s college even charges a fee (percent) if you make an ACH payment. If you pay with a check or cold, hard cash they don’t charge a cent. </p>
<p>That’s silly. ACH payments don’t cost anything as far as I know. That was going to be my response to twoinanddone, that we don’t send checks and pay in full electronically once a semester, but all 3 of my kids’ colleges would have charged a 3% fee to use a credit card. So unless my Chase Freedom comes up with a 5% on college payments, I will not be charging them! </p>