The cost of college is rising, and it likely will not be going down any time soon. According to College Board, the average cost of attending a four-year public university is $9,970. The average cost of attending a four-year private university is $25,670 per year.
Generally speaking, it is a bad idea to use your credit card to pay for your college tuition. Credit cards have high interest rates. You could end up spending a lot more money if you use your credit card to pay for the tuition.
However, there are a few ways that you can use your credit card to your advantage. If you can pay the credit card off in full each month, then it will not hurt to use your credit card to pay for tuition. You can also get cashback rewards. You can earn free hotel stays and airline miles.
Most people do not use a credit card to pay for their tuition. Only 3 percent of parents use a credit card to pay for tuition. Four percent of students use a credit card to pay for their tuition.
If you choose to use a credit card, then you will need to make sure that you pay the credit card off before you are charged interest. Many credit cards will allow you to have an interest-free year. It is not uncommon for credit card companies to charge 18 percent or more interest.
You will also need to watch out for the potential fees. Many colleges will charge you a fee to process your credit card. Eighty-five percent of the colleges in this country allow you to pay for your tuition with a credit card. Fifty-seven percent of schools will charge a fee for credit card processing.
For example, you pay $4,500 in tuition. The school charges you a fee of 2.62 percent. You will have to pay an extra $118. If you are not going to earn rewards, then you will be better off finding another way to pay for your tuition.