Universities Are Beginning To Roll Out An Option For Students To Pay Their Tuition Using PayPal Or Venmo – AfroTech
There are new ways for some students to pay for college tuition.
Fox Business reports that Bellarmine University, Butler University, Kansas State University, Michigan State University, and Texas Tech University are among the first universities to allow students to pay their tuition using PayPal or Venmo through payment platforms such as Illumia, Nelnet Campus Commerce, and TouchNet. More universities are expected to follow suit.
Students are already using PayPal or Venmo for groceries, rent, rewards, or to send money to loved ones, according to a press release, so the new tuition payment offering is meant to further expand the convenience.
“Students and families want the flexibility to use payment methods that fit how they manage their money, while institutions need those options to work within the systems and processes their teams already rely on,” SVP & General Manager of Integrated Payments at Illumia Don Smith said in the press release. “This integration helps schools expand choice in a practical way, improving the payer experience without creating a disconnected path for campus teams.”
The companies also noted that PayPal and Venmo have security measures in place, such as encryption and fraud monitoring.
“Tuition is one of the biggest payments a family will make, and it should come with the same flexibility and security that millions of people already count on PayPal and Venmo for every day,” said Frank Keller, President, Checkout Solutions & PayPal, in the press release. “That’s why we’re proud to bring that same choice and protection into the reliable systems schools have already built.”
It should be noted that students who use PayPal or Venmo to pay their tuition may not have FDIC insurance unless their funds are held at participating banks, such as Goldman Sachs Bank USA, Wells Fargo Bank, and JPMorgan Chase Bank, Fox Business reports.
The FDIC pass-through insurance “protects against the failure of a Program Bank, not the failure of PayPal. PayPal is not a bank, does not take deposits, and is not FDIC insured,” PayPal said in a statement to the outlet.
