The UPEI Student Union is lobbying against a new policy that will prevent students from paying tuition by credit card.

'Students don't always have their student loans come in on time.'— Tim Cullen, student union president

Student union president Tim Cullen was just notified of the planned change Tuesday by the university administration. Cullen said the administration claims the move will save the university $125,000 a year in transaction fees, but Cullen said it will hurt students.

"Students need the flexibility to choose a variety of payment options," he said.

"Students don't always have their student loans come in on time and many students use credit cards to hold them over with the university to avoid paying late fees. They'll pay their tuition on their credit card and then they'll use their student loan when it comes in to pay off the credit card."

The new policy could also cause serious difficulties for international students, who might not have any other option for paying from a foreign country.

The new policy comes into effect on July 1, 2010. Cullen is hoping a strong lobby will convince the administration to reverse the decision.