(MONEY Magazine) – The thought of ringing up tens of thousands of frequent-flier miles has lured many a parent and student into charging college tuition payments. Now some schools, faced with tighter budgets, are balking at paying the 1% to 3% fees levied on all card payments. Notes Tim McDonough of the American Council on Education: "Allowing students to charge their fees on credit cards is a convenience colleges and universities can't afford in tough times." The University of Massachusetts dropped credit-card payments last year. Oberlin College did so in July 2002. Other schools are passing on the fee. (Visa does not allow merchants to surcharge, so schools that want to charge fees can no longer accept Visa cards.) This summer, New York University added a 2.5% fee. At Columbia University, which tacked on fees last year, you'll pay $564 to charge $25,000 in tuition--a high price for the free airplane ticket you'd earn. --M.J.