College on the Cuff

Any skeptics who still doubt that the cashless society is only a credit card away should have visited Ohio State University last week. There, with all the aplomb of executives signing for an expense-account lunch, student after student stepped up to the bursar's desk during registration, pulled out a shiny Bank-Americard and announced: "I'd like to charge it on my credit card, please."

College-by-credit-card is backed by Columbus' City National Bank, which in 1966 became the first bank in the state to offer a major credit card. So far, 150 students have signed on the line, and the bankers expect that more than 4,000 will be using cards to pay for tuition or room and board at Ohio State before the year is out. The idea is likely to spread. It has already taken hold in California, where students at Stanford, San Jose State and throughout the University of California extension system have charged their education on the BankAmericard.

The idea is popular with parents, who find that inflation has made extra cash scarce. Charging on the card often amounts to an interest-free loan for several months. Reason: banks take time in processing the bills, and payment is not due until 25 days after the billing date. Even then, payments can be spaced out, though interest charges amount to as much as 18% a year. Such steep charges can make the cards quite profitable for banks.

In their competition for new customers, officials of banks and independent credit-card companies have concocted many new ideas that go far beyond the campus. Credit cards can now be used to rent a wedding hall in Reno or to, buy an hour on a psychiatrist's couch, a can of fishing worms in San Francisco, or a tour of Washington.

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