As if college campuses didn’t make enough money as it is from expensive tuition fees, parking permits and housing charges, UCLA, the University of California at Los Angeles has decided to make those expenses even more unbearable.
The University says is will begin charging a 2.75% credit card processing fee beginning August 1, 2011 to those that pay using a credit card, pointing to steep processing fees they have to pay each year. In fact, UCLA pays $6.5 million each year in these fees, a cost they simply cannot burden themselves with any longer according to the institution.
Additionally, the campus will no longer accept any VISA credit cards due to the fact that the company does not allow merchants and other processors to charge a percentage of the purchase as a fee. UCLA is offering a program to those that wish to change payment methods to avoid these fees called eCheck. It is said to provide the same convenience as credit cards but without fees. Students can sign up for the card online.
Many students are reacting strongly to the news, especially students with lower income that use credit to get through college. One student interviewed by forbes.com who wished to remain anonymous stated that he is “nickeling and diming, trying to save up some money. I am relying on perks like a rewards credit card that can give cash backs to budget daily necessities.” Many on campus feel that, “it’s preposterous that we are being taken advantage of.”
79% of the students at UCLA have been paying their college expenses with a credit card so this change could become a real issue on campus. The students at Stanford University were also asked to pay a similar fee and then the requirement was removed as it was too steep for the students to cope with.
If you or someone you know is a student at UCLA, It is probably a good time to prepare for the transition. Those with Visa credit cards can apply for another type of credit card. We here at Credit Cards Professor recommend the Discover More rewards card which offers a percentage of cash back to help alleviate the pressure of new college expense fees.
Hopefully, UCLA will see how much of a burden this new expense will be to the student body and eliminate it quickly.
As always, stay tuned for more credit card news and important updates.
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