By Amy Young
Beginning Winter Semester 2006, BYU students will have the choice of three different options when paying tuition and fees, insurance premiums and BYU loans.
The change is an effort to cut credit card fee costs for the university, which are expected to reach $900,000 by the year?s end.
?In the past, BYU has absorbed the credit card fees for the students, which can be very expensive,? said Richard White, university treasurer. ?The new program will help us save church funds.?
The new program will use a third-party processor for credit card fees, placing the costs on the students and not BYU.
White said students who pay with credit cards may still use that option, but the third-party processor will charge a 2.75 percent service fee.
Under the new plan, however, students will only be able to use a MasterCard, American Express or Discover card. Visa cards will not be accepted because the company doesn?t participate in the program.
The changes in payment options will not only save money for the university but will also benefit students.
?When we went with a third-party processor, it made eCheck, another payment option, available,? White said. ?eCheck deducts funds directly from a student?s checking or savings account.?
Using the electronic check option will help students avoid lines and unnecessary fees.
?We prefer that students use the eCheck option,? White said. ?It is free, you can do it online, and it is very safe.?
The eCheck option wasn?t available when the university started accepting payments online, but now BYU has the opportunity to process payments online without the fees for the university or the student, said Carri Jenkins, university spokeswoman.
White said if students are using their credit cards to fund their tuition costs, the university encourages them to get in touch with BYU?s financial aid counselors and explore other less-costly options.
?We invite students and their parents to contact us for information about available funding programs, to learn about the application process and to identify appropriate funding strategies to meet college expenses,? said Paul Conrad, BYU financial aid director, in a press release. ?In addition to federal financial aid, institutional loans are available to assist students in meeting their tuition expenses.?
The new program will go into effect beginning Winter Semester 2006 and will only apply to tuition and fees, insurance premiums and loans to BYU. These loans would include BYU short-term loans, Marriott School of Management loans and Woolley Law School loans. It will not pertain to Stafford loans because they are not paid back to BYU, White said.
