Sallie Mae: Students Use Credit Cards More to Pay for Education
Students in higher education are using their credit cards at record levels to pay for their schooling, reports a study out from Sallie Mae this morning.
Students charged an average of $2,200 in direct eduction expenses -- such as tuition -- on their high-interest-rate credit cards last year, according to the study from Sallie Mae, the student loan giant.
Last year, 30 percent of college students put tuition on their credit cards, up from 24 percent in 2004, the study reports.
In 2004, students put an average of $942 worth of tuition on their credit cards, which could be a function not only of rising credit card use but also rising tuition.
“Too many students are at risk of overpaying for college by pulling out credit cards to pay for textbooks or even part of their tuition bill, instead of using less expensive financial aid to cover these items,” said Marie O’Malley, director of consumer research for Sallie Mae and author of the study.
Here's the most terrifying statistic from the Sallie Mae study: On average, students have 4.6 credit cards(!), and half of college students had four or more cards.
The average balance carried by a U.S. college student is $3,173, higher than any of the previous studies.
April 13, 2009; 11:13 AM ET
Categories: The Ticker | Tags: Sallie Mae, college tuition, credit cards
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