A recent study indicates that more than half of college going students‘ posses a credit card and around a quarter of them are using these cards for paying their tuition fee. The data stated that 45% of the students using the card for paying their tuition fee carried a balance when compared to 38% of those who did not charge tuition.
These figures certainly raise a concern regarding students relying on credit cards for paying their college fee despite the fact that other installment plans and student loans charge a lower rate of interest. There are a number of institutions that enable students to pay their tuition bills through credit cards but there are some institutions that don’t follow this practice as they feel that it would move the students towards expensive ways of borrowing.
I believe that the parents should realize the fact that credit card is an expensive option and they should rely on other means for paying the fees of their children plus it would prevent students from getting into the vicious circle of credit card at an early age.
