(Aired on August 18, 2010)
I got a nice e-mail this week from a fellow who wondered why more wasn't made of TRU's policy on students using credit cards to pay for tuition. The viewer had a point, and his e-mail got me thinking.
The story followed a decision by Kwantlen to join a long list of institutions to stop offering credit card services. In doing so, Kwantlen was going to save about $250,000 in fees. TRU says it could save $750,000 in fees, but it won't reconsider because of how convenient it makes things for TRU students.
Credit cards certainly are convenient. They allow you to buy things without actually paying for them. It's something that a new university student would love to take advantage of, I'm sure. But it's not a good habit to get into, especially for major, major expenses like university tuition. Interest rates on most credit cards are through the roof, and most students don't have much sense of fiscal responsibility.
A better idea is to take advantage of Canada Student Loans. Canada Student Loans are relatively easy to qualify for, and they are low interest. I'm all in favour of encouraging more kids to sign up for post-secondary education and have the university experience. But student loans represent far more responsible debt management than Visa or Mastercard.
For international students, some more latitude on credit cards is probably helpful. For most Canadians though, credit cards are simply financial procrastination. And Lord knows university students procrastinate enough.
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