Can I Pay College Tuition With a Credit Card?

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Sure, you may be able to pay thousands of dollars of college tuition with a credit card. But should you? Read on to weigh your options. 

Credit cards make payments easy. Once approved, you can buy anything on credit — even student tuition, should your college offer that option. But should you pay college tuition with a credit card?

More often than not, no. Generally speaking, it’s expensive. More on that later.

But there are situations where, sure, it might make sense to cover college expenses with a quick swipe of disposable plastic. Let’s explore when it makes sense to pay for college with a credit card and follow this up with alternatives.

You can pay for college tuition with a credit card

Here are three reasons to pay college tuition with a credit card.

Reason No. 1: Convenience

Paying with a credit card is quick and easy. Many colleges allow you to do so through an online portal. (For example, California State University Northridge lets you pay college tuition with a credit card through links on its official website.) To check, contact the school’s financial aid office.

If you find it challenging to get approved to borrow money or find free money (such as scholarships or grants) to cover 100% of your student tuition, you may use a credit card to make up the difference.

You can even consolidate student debt onto a credit card. But be wary of this — you may be exchanging a decent rate for a worse one.

More on this: What is debt consolidation?

Reason No. 2: Rewards

Credit cards often offer rewards. You can pay college tuition with a credit card to earn cash back or points for travel. This is an acceptable strategy should the following be true:

You can and will immediately repay the credit card debt.The rewards are bigger than the fees your college charges you for paying on credit.

Credit card debt is no joke. Interest is typically in the double digits, and carrying a lot of debt on your card could tank your credit score. You want to avoid that by paying off credit card debt within a month of use.

Colleges often charge you 2%-3% in fees for paying with a credit card. Are your rewards better than 2%-3% back? If not, you could lose money by paying with credit.

Reason No. 3: You’re waiting on money

Maybe you’re waiting for a family member to send you money, and in the meantime, you need to pay that tuition. A credit card can extend your payment date, covering the cost of tuition now so you can pay it off later.

If the extension is short — a month, say — this might make sense, since you won’t pay any interest. But your college may charge you a 2%-3% fee for paying with a credit card. And should your friend/relative/sponsor not pull through, you’ll be on the hook for paying off that debt.

Loans are typically cheaper

Depending on the loan, you can get better deals than credit cards. That’s because credit cards have higher interest rates and are frequently charged processing fees.

The best personal loans offer lower interest rates than those on most credit cards. Plus, you can avoid 2%-3% credit card processing fees by paying with personal loans. Consider applying for any grants or scholarships that might be available to you, as well — your school’s financial aid office can help. And be sure to fill out the FAFSA (Free Application for Federal Student Aid) to find out what you might qualify for.

What about smaller college expenses? You may want to purchase textbooks and make smaller school expenses. Some of the best student credit cards pay you to do so by offering you cash to maintain good grades. If you pay them back on time, this will build your credit score.

Bottom line: You want the best option available to you, right? Consider what it would cost to pay college tuition with a credit card instead of taking out a loan. Practice good debt repayment habits to keep your education affordable, no matter your choices.

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