I am going to have to deal with this nuissance as well, but at least our subsidized education is reasonably affordable. Just across the border, Clinton county community college has a 5000$ a semester special. Our schools are pretty good, concordia and mcgill are schools that attract tons of students from china and the states. Anyone at jmsb can testify to that.
I'm assuming the guy doesn't have 1800 in his bank amount.
If he pulls out 1800 from his credit card, he will be charged interests from the first day until he pays off the amount.
If he pays directly with his credit card, interests start only after the due date (+/- 1 mont).
It doesn't really change anything... Cause if he takes the cash advance of 1800$ he'll be charged interest from day 1 to day of payment.
If he would of paid by credit card, he would have until the due date to pay, but if he doesn't pay the full amount by due date he gets the interest of day 1 to due date charged for each purchased. so the 1800$ expense he did will be charged from the date he paid the school fees until the due date. So basiclly he will pay the same interest as if he would of done a cash advance.Interest will run every month until he clears the balance...
Concordia should not have been able to institute these changes at this late a date. I understand from the schools point of view that it is a significant amount of money they'll be saving in fees but they could have given the students better notice.
If the school doesn't want students to pay via credit card because of fees they will incur, perhaps they should allow the student the option of paying these fees as a surcharge. Yes this will add to your financial burden, but your CC most likely has incentive such as cash back, or air miles which will almost offset this extra cost. This is a bit better than taking the cash advance on your CC, but really we're only talking about $10-15.
As a larger picture, Student Unions should put pressure on the Government to legislate financial institutions to waive the user fees charged to Universities with regard to tuition fees. This would also involve the CC holder waiving his/her rights to any incentives (Air Miles) earned on that purchase. I don't know how likely this is to happen but who knows.
As for those individuals that have to wait until Sept to receive Gov't aid but have to pay a few days earlier, isn't there an option to remit student fees to the university and the balance to the student. I could be wrong. I'm lucky I went to McGill when the whole year cost me $900, so I was alway able to pay for it with savings from my summer job.