In 2005, Brigham Young University paid more than $900,000 in credit card fees for tuition purchases and insurance premium payments. The estimated cost for 2006 would have exceeded $1 million, but BYU changed its policy.

BYU now requires that when students pay tuition or make loan payments, they pay via electronic check, cash, a paper check or accept a 2.75 percent fee for using a bank card.

Other campus purchases can still be made with a card without a surcharge.

Many Utah colleges and universities are enacting similar policies. Utah State University and Snow College both restrict credit card payments for tuition. On July 21, Utah Valley State College made changes to its tuition payment policy so the school could save between $500,000 and $800,000.

According to the American Council on Education, 56 percent of all dependent undergraduates owned at least one credit card, and one in four of them used it to pay tuition. Even more students are choosing to pay with a debit card, and for a lot of schools, debit cards are treated the same as credit cards.

Steffany Forrest, assistant manager of income accounting and student loan services for the University of Utah, said a significant amount of student transactions happen via credit card.

The U. still allows credit card payment for tuition. The school even suggests using a credit card if students can't meet the tuition deadline. The university doesn't intend to change those policies.

"We've been taking credit cards since 1997. The demand that there is right now, I don't see the university stopping that," Forrest said.

Officials from universities with limited credit card policies said the money they save will go back to the students.

"We can spend this money on additional programs and lessen tuition increases," said Megan Laurie, assistant director of communications at UVSC.

Students at BYU, where the policy has been enacted since October, for the most part have switched to using electronic checks.

BYU treasurer Richard White said that prior to the surcharges, 30 percent of students paid tuition with checks and 70 percent paid via bank card. Now 80 percent of students pay with either paper or electronic checks. About 20 percent still pay with a card, accepting the 2.75 percent fee.

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