February 4, 2005

Dear Students and Parents:

As you know, Saint Joseph’s University is devoted to providing the best possible education. At the same time, we are deeply aware of the financial sacrifices our students and their families must make in order to afford a college education. Because of this, we are constantly seeking ways, both large and small, to reduce our expenses and become more cost-effective. In doing so, we are able to keep tuition increases to a minimum.

For many years, the University has permitted students and parents to use credit and debit cards to pay tuition and related expenses. Although this has been available for some time, a considerable number of students and families do not make use of this option, choosing instead to pay by check. Unfortunately, the bank transaction fees associated with the use of credit and debit cards have continued to grow, and that cost is shared by all students, not simply those who choose to pay in this way.

After looking carefully at the expense associated with this service, and in an effort to be as equitable as possible to all students and their families, we have decided that we will no longer accept direct credit or debit card payments for tuition, fees, or room and board, effective August 1, 2005. Despite the fact that the University will no longer accept credit or debit card payments, we are very sensitive to your desire for this convenience. Therefore, we have partnered with an outside company, IPP/HES, to provide this service for the University. This will allow you to make credit or debit card payments through a third party, which will assess a service fee to cover the cost of these transactions. For more information, please contact IPP/HES by telephone at (800) 422-0010, or via the web at www.highereducationservices.org.

As we make this change, we want to reassure our students and their families that we will continue to provide a number of flexible payment options, including an installment payment plan administered by IPP/HES, ACH payments and various loan programs such as the Stafford, Plus, and Alternative Loans.

We appreciate your understanding of this payment method policy change. If you require any additional information, please don’t hesitate to contact our Student Service Center at 610-660-2000, or stupay@sju.edu. Thank you.

Sincerely,

Louis J. Mayer

Vice President for Financial Affairs