UNIVERSITY COULD TEACH LESSON IN `EASY CREDIT'

Credit cards are a fact of modern society. They are used and abused by millions of Americans every day.

Today, people can buy almost everything with a credit card, and that now includes an education at Southeast Missouri State University. Last November, the university began allowing students to pay for their fees with MasterCard or Visa. Any student fees can be financed by credit cards, such as incidental, room and board and parking fees.

This financing method offers convenience, but it also imparts an element of peril for some students. The risk lies with those students who put too much of their college education on credit. With interest rates of 18 percent or higher, students could end up paying for their education three or four times over.

At this point, a minority of students are using plastic to finance their education. One reason may be that many students may not be aware of this payment option. Currently, the Bursar's office at Southeast takes in about $2 million in receipts each month. About $50,000 of that is paid by credit card.

Although a relatively new option here, credit cards have been a familiar payment option on large university campuses for more than a decade.

There's nothing wrong with the university opting for credit card payments. Credit card payments are convenient for short-term financing.

But the institution might consider developing a way to sound an alarm if a student passes a certain point in credit card payments. Then, financial counseling could be provided. That might include a talk with financial aid officials to see if student loans or other types of aid are available for this student.

To be fair, credit card woes are certainly not limited to college students. It's a problem that has permeated all segments of society. Many people have found their finances bankrupt through a "buy now, pay later" approach.

Through financial counseling, university students may be able to get a jump on developing a sound credit card aptitude. Learning that credit isn't always "easy" could be a valuable lesson for life.