A recent study by the Smith College Women and Financial Independence Program found that nearly one quarter of college students are using their credit cards to pay for some of their college expenses. This is a poor choice, as we shall soon see.

Unlike a generation ago, most students today have at least one major credit card. The lending industry has aggressively targeted college students and made it very easy for them to obtain cards. The problem is that most people of college age have relatively little money management experience and tend to use the cards rather foolishly.

About ten percent of college students have balances on their credit cards of at least $5000, and much of this debt is attributable to using the cards for college expenses.

The main problem is the interest rate on credit cards, which tends to be much higher than other borrowing choices for tuition. The Federal Stafford student loan program offers rates for tuition in the neighborhood of 5%, and that's after an increase that recently went into effect. Five percent is a dramatic improvement over the 20% or so that one might pay using a credit card.

Other options are available. Some universities will allow payments; students should inquire to see if they can simply pay on installments. Even if interest is added, it undoubtedly will be a less expensive option than paying by credit card. There are student loan programs available for the parents of students at favorable rates that are only slightly higher than those for Federal student loans.

Students need to understand how to use credit cards responsibly. The best use for credit cards is for a purchase that can be afforded immediately, not a long term purchase. Buying textbooks with a credit card is OK as long as you can pay the bill when it comes at the end of the month. Putting a semester's tuition on the card, with no idea as to how or when it might be repaid, is a poor choice.

Students who develop bad spending habits early are more likely to have problem debt down the road, and may be headed towards early bankruptcy as their spending hurts their credit report.

Anyone who has questions about how to effectively pay for education expenses should contact his or her school's administration. They can point out which department or departments may be able to help assist with expenses in a way that won't drive students straight into a life of problem debt.