40 The Queens Courier • kids & education • may 29, 2014 for breaking news visit www.queenscourier.com ▶kids & education Alternatives to paying for tuition with credit cards With college bills looming, some students and families may be considering paying with a credit card. According to a Sallie Mae/Gallup poll, cash-strapped parents charged an average of $5,822 to help pay for their child’s higher education, while students charged an average of $2,542. The New York State Higher Education Services Corporation (HESC), the State agency that helps people pay for college, advises students and families deciding how to pay their college bills to consider the long term impact of credit card debt. The hidden costs of paying with plastic Convenient as it may be to charge thousands of dollars in tuition and fees – no financial aid or loan forms to complete and easy on-line payment options – the simple transaction may become more expensive in the long run. Consider these facts before you say ‘charge it’: • The national average for credit card interest is hovering close to 15 percent, more than double the current rate for federal unsubsidized Stafford Loans for which nearly every student qualifies. • Credit cards offer no deferment options for repayment, so monthly payments begin immediately. If making only minimum monthly payments, the interest on the balance quickly grows because of the higher interest rate. • Carrying a high credit card balance for direct college costs may also leave you close to your credit limit, allowing little room for emergencies. Additionally, high credit card balances may adversely affect your credit rating. • At tax time, federal loan borrowers may be eligible to deduct the interest on student loans, a savings not usually available to credit card users. • To cover increasing credit card processing fees and to discourage students and families from using credit cards to pay tuition bills, a few colleges are charging an additional fee; it may be worth a call to your college student accounts office to find out if they add a surcharge for credit card payments. Exploring other payment options Due dates are coming fast, but take time to explore other payment options before using your credit card. For a small fee, many colleges offer an installment plan to help spread the college bill over several months. There are no interest charges, no credit checks and in some cases, payments may be made electronically. As with any financial commitment, be sure to understand the terms of the agreement, along with the due dates and any penalties for non payment. Get all the free money available to you in the form of grants and scholarships. If you need additional financing, the federal government offers low-interest fixed-rate education loans. Alternative, private loans should be the last resort. A careful comparison of the many student loans that are commercially available will help you see how factors such as fixed or variable interest rates and fee amounts affect how much your loan will actually cost. Also review the loan terms, whether payments may be deferred, and any payment options. Take the stress out of paying college bills by taking time to review your options and becoming a smart borrower. HESC. org provides information regarding private loans, detailed information about the various types of student loans, interest capitalization, and how to determine the true cost of borrowing. – Courtesy of The New York State Higher Education Services Corporation Celebrating 15 Years Of Service If your child is not doing what other kids the same age are doing — you should ask questions…and get answers. Call us—it’s free and confidential. Our caring professionals know child development. WaLKinG • LearninG • PLaYinG • BehaVinG • taLKinG • eatinG 718-631-1110 or 888-239-0468 (Queens & Brooklyn) reference Web id: Pediatric theraPists Wanted! apply online @ www.mksalomon.com QBc101 helping Kids do their Best! The Early Intervention Program is funded and regulated by the NYS Department of Health and the NYC Department of Health and Mental Hygiene. Services are provided at no out-of-pocket cost to families for children birth to age 3 who meet eligibility guidelines. www.mksalomon.com [email protected]
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