Billing fee, not yet free

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Posted: 3/3/08

Students on the OSU campus can fully enjoy the sound of their money flying out the window. A sound also known as paying their tuition bill.

It sounds something like a deck of cards being prepared for a game of "52-card pick up."

But to some students, it probably feels a little like a leaky faucet that just won't stop dripping their money down the drain.

For those that choose to pay their tuition bills online with a credit card, they were facing a steep fee of $40 per transaction.

As of Saturday, that fee was dropped to $25.

We're jumping up and down.

When paying your tuition bill this next term, be sure to pay using the OSU eCheck service. It is fee free.

The eBill option of paying with a credit card can leave a sour taste in the mouths of students because credit card companies charge OSU a stiff fee (up to three percent on each transaction) and that fee is passed along to students.

Credit card companies collected $13 billion in 2006 from the merchants that allow customers to swipe their cards, according to Kiplinger.com.

Just think.

Student A's $4,000 tuition bill can accumulate a $120 fee for OSU to have to tackle.

But that means that Student B with a $10 bill is still paying more than 8 times his own fee to compensate for Student A's large fee.

Student A is paying just less than one-fourth of his own fee.

OSU is by no means using one student's money to pay for another student but when it comes to fees assessed by credit card companies, OSU is paying from the same pot.

Student A, B, and presumably hundreds of other students, are paying more than, less than and equal to, to make sure OSU is breaking even on credit card fees.

OSU by no means should eat the cost of this fee, but maybe students should be made aware of what exactly this fee is and be able to pay their fair portion. Maybe each student should be able to pay the up-to-three percent charge on their own transaction.

For students using credit cards to pay tuition bills, be sure to consult OSU's Student Debt Management team. They are able and willing to assist with financial counseling.

Don't just stow education costs onto another credit card.

It is important that appropriate loans are taken to keep interest rates low for students. And it's not too late to complete the FAFSA for the next school year.

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