Wednesday, August 13, 2008

Paying Tuition With Your Credit Card?!?!?

I cannot believe that 1) I am posting twice in one day when I have an appellate brief going out today and 2) I received this email from Chase.

On a list of bad ideas, this is pretty far up there. I guess this must be in response to the huge jump in financial aid requests, but putting your college tuition on a credit card? Maybe it's because I finally just watched Sicko, which touches upon the crippling costs of education here in the U.S., but I could not believe this. Why are they giving students so much credit that they can afford to put their tuition on their card? What happened to the credit crisis?

I can see putting it on your card if you can immediately pay it off (just to earn points or something), but this seems to be aimed as students who, most likely, don't have that kind of cash. This just has potential to get some people into a really really bad situation on graduation.


meg said...

You are missing the obvious. Credit card debt is dischargeable in bankruptcy; student loans are almost never discharged.

It's really quite brilliant.

the default attorney said...

I don't think declaring bankruptcy and having your credit ruined for life when your 20 years old should be considered "brilliant."

meg said...

It's brilliant compared to defaulting on non-dischargeable student loans. Think in comparisons and not absolutes.

Clearly not a plus, and I was speaking with not a small bit of irony. :) It's also "fraud" if you intend to never pay them back, and will prevent you from gaining admission to just about any bar in the country.

Melissa said...

One of my family members has her mortgage on a credit card. She got some ridiculously low interest rate (like 2.0%) so she transfered what was left of her mortgage on it. As an added bonus, the house isn't attached to the loan. For some reason, I don't think Chase is offering that kind of offer though.

the default attorney said...

Wow. The mortgage one really does make sense. If you stop paying your card, you might ruin your credit, but you'll still have your home.