It’s not easy to pay for college these days, and more consumers are finding that they have to put some of their student loan debt on their credit cards.
A recent survey conducted by credit card news website CardRatings.com found that 36 percent of those polled carried some amount of their student loan debt on their credit card. Of the respondents, 12 percent said student loans accounted for $5,000 or less of their total credit card debt, 7 percent said they had $5,000-$10,000, the same number said they had $10,000-$20,000. A full 10 percent reported that they had more than $20,000 in student loan debt on their credit card.
The site’s report on its findings said the downsides to carrying such significant debt on a credit card is obvious. Students end up shelling out considerably more for their education when they pay for it with their credit card thanks to the associated interest rates.
A 2009 poll by Sally Mae said that 92 percent of undergrads with credit cards use them to pay for books, supplies and other school-related expenses. Another 30 percent use credit cards to pay their tuition.