Is Convenience When Paying Your Tuition Worth a 2.62% Fee?

diplomasPeople using credit cards to pay for college tuition should expect to pay an average 2.62 percent convenience fee, a recent survey concludes. These convenience fees likely trump any reward points –- especially because credit card companies never throw college tuition into their rotating 5 percent cash-back categories.

Western Kentucky University in Bowling Green, St. Joseph’s University in Philadelphia and Roger Williams University in Bristol, Rhode Island, charge the highest convenience fees at 2.99 percent. So paying the $40,420 annual tuitionat St. Joseph’s with a credit card would add $1,209 to your bill.

Why Do Colleges Charge Convenience Fees

Merchants pay interchange fees to credit card companies — averaging 2 percent — for every swipe.

Read on at DailyFinance to find out why colleges charge convenience fees and when it makes sense to pay with a credit card.

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3 comments on “Is Convenience When Paying Your Tuition Worth a 2.62% Fee?
  1. Mario says:

    Maybe if you really REALLY need to meet a spend requirement. The days of 5% everywhere cards are pretty much gone otherwise.
    Mario recently posted…Six tips to vacation in New York WITHOUT looking like a touristMy Profile

    • Broke Millennial says:

      5% everywhere? What magic do you speak of?! A flat two percent cash back on everything is the best you can do, that I’m aware of. Rotating 5% cash back categories are shenanigans most of the time.

  2. SG says:

    I was grandfathered-in on my Capital One (in Canada) and still enjoy 5% on gas and groceries on purchases up to $600/month, and between 1% and 3% on everything after without a limit.

    If I am able to earn at least 2% on my credit card on the tuition payment, I would totally do it…that is if I had enough cash to pay off the card in full.
    SG recently posted…What Is Your Job Costing You?My Profile

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