Is Canadian credit card tuition ban a sign of things to come in U.S.?
Many American students face huge amounts of credit card debt before they get out into the real world, with some even putting tuition payments on their card. But the decision of one Canadian college may start a trend in the U.S.
Concordia University, a school in Montreal, says that as of August 31, 2009 it will no longer accept credit cards for tuition payments.
“We recognize that credit card payment was a very convenient way for many students to pay for their tuition and this change might pose some challenges for some students,” says the school on its website. “However, we assure you that there are a number of options available to ensure that no student will be forced to abandon their studies due to this inconvenience.”
The school seems to be trying to help save students from themselves and the high interest rates that are often associated with credit card balances. The school even acknowledges that a $75 late fee might be preferable to credit cards as “the late fee and monthly interest rate is still significantly lower than the costs of carrying an outstanding balance on a credit card.”
Although there haven’t been a vast amount of American universities dropping credit card payments, some new credit card legislation is aimed at making it harder for credit card companies to target college students.
Bills in both Connecticut and Illinois will go into place in January which place restrictions on how and where the companies market cards to college students