Released: July 01, 2009

Paying college tuition with credit card gets costlier

Source: Kathy Chu and Mary Beth Marklein, USA Today

Across the nation, a growing number of universities are making it harder — and costlier — for students to use credit cards.

Starting Wednesday, students at the University of Southern Maine who pay tuition using plastic will face a 2.75% processing fee. Other schools that have adopted, or are adopting, similar policies include George Mason University, Northwestern University, Wichita State and the University of Virginia.

The movement comes as colleges face budget shortfalls and look to trim costs wherever they can. When students use a credit card, institutions have to pay an average of 2% to process the transaction, according to Nilson Report, a payment systems newsletter.

Read Full Article: Paying college tuition with credit card gets costlier