Students Paying With Credit Cards - College students in the United States are using credit cards more than ever to pay for their education, and they're carrying high balances because of it, a recent report suggests.
Students who used credit cards for tuition, books, and other college expenses last year charged an average of $2,200, up from $942 four years ago, according to the survey, conducted by student loan provider Sallie Mae. The study suggests that students are using credit cards instead of other financial aid, including grants and private loans.
About 30% of students put tuition on their credit cards, up from 24 percent in 2004, when the study was last conducted. "I think what's happened is, since the economic crisis last fall, families are strapped, and they don't want their child's education suspended, so a lot of families may be using their child's credit card as a last resort," a consumer resource on credit cards explained. They cautioned that students and parents need to be aware of their card limits to avoid fees and penalties that can be as high as $30 per transaction. |
