By: Ashley Mowreader

The topline:

Over half of all Texas college student respondents used a credit card, and nearly all credit card users paid for basic necessities on credit.
Three-quarters of college student credit card users paid their bill on time but only half paid off the full balance each month.
Among respondents who use credit cards to pay for college, 7 in 10 are worried about being able to pay for their monthly expenses.

A growing number of Texans are participating in postsecondary education, with over 1.4 million students enrolled in public and private institutions in fall 2025.

However, high costs associated with attending college, including tuition rates, books and supplies and living expenses, continue to impede student success. Recent data from Trellis Strategies shows how risky financial behaviors like credit card usage or Buy Now, Pay Later services help students pay for college but could impact their long-term financial health.

According to the 2025 Student Financial Wellness Survey, 53% of Texas undergraduates used a credit card and nearly all (90%) used a credit card to cover necessities including food, transportation or housing, . However, only three-quarters (73%) pay their bill on time and fewer than half (42%) paid their balance in full each month.

Credit card usage among college students has grown, according to Trellis’ data. In 2018, the first year the survey was administered, 43 percent of undergraduates said they used a credit card. This past fall, 54 percent of college students said they use a credit card to cover everyday items, educational expenses or other costs. Nationally, 38 percent of young adults reported having at least one credit card in 2024, up from 26% in 2014, according to the U.S. Census Bureau.

Buy Now, Pay Later are particularly popular among young people, with one-quarter of Texas undergraduates utilizing BNPL services. A 2025 survey from the Federal Reserve Bank of Atlanta found 11% of U.S. consumers used BNPL in the past 30 days and 58% have used the service more than once.

Holding revolving debt on credit cards or BNPL services can expose students to high interest charges and damage their long-term financial stability, as well as undermine their academic achievement.

Financial stress is one of the top drivers of students’ leaving higher education; 41 percent of stopped-out students said “personal financial reasons” including financial hardship or discomfort taking out loans led them to abandon their education, according to a 2023 Trellis survey. Among currently enrolled students in Texas, 55% are worried about paying for their monthly expenses and this rises to 62% of students who used a credit card to pay for basic necessities and 72% who did not pay off their credit card balance each month. In addition, 89% of students who do not pay off their balance in full reported experiencing financial difficulties while enrolled and 61% of said they have difficulty concentrating on schoolwork because of their finances, underscoring the relationship between debt and academics.

Credit card and BNPL debt can also compound existing student loan debt or other related expenses students hold, including car payments, mortgages or payday loans. One-quarter of Texas undergraduates say their total debt is unmanageable, and this rises to half of respondents who hold credit card debt.

In response, colleges and universities should consider proactive financial education for students including explaining how consumer credit works and ways to responsibly use and repay credit cards. Financial wellness or money management courses can be delivered in-person, remotely or asynchronously, allowing maximum flexibility for students with competing priorities including work or caregiving responsibilities.

Connecting students to other basic needs supports, including campus resources like food pantries or public benefits such as SNAP and housing assistance, can further reduce students’ reliance on credit cards or BNPL services

One in six Texas students said they use a credit card to pay for college in the 2025 SFWS, underlining a need for alternative and accessible financial pathways for tuition payment options. Institutional payment plans could be one solution, offering structured, predictable payment plans that can minimize high-interest credit use.

Ashley Mowreader is a freelance data journalist. Previously, Ashley worked for Inside Higher Ed, covering barriers to student success nationally, with a focus on evidence-based solutions. She holds a bachelor’s in journalism from Pepperdine University and is currently pursuing her master’s in journalism from the Craig Newmark Graduate School of Journalism at CUNY. 