LOS ANGELES (CBS) — One of California’s most competitive universities has found a new way to make up for the state funding gap: a processing fee for students who pay tuition with credit cards.

Officials at UCLA say they can no longer afford to foot the the 2.75 percent credit card processing fee for students when they pay tuition, housing, or other bills with plastic.

It’s estimated the policy shift will boost the school’s dwindling coffers by over $6.5 million a year.

And as KNX 1070′s Jon Baird reports, some students say they understand, but don’t like it.

“It’s pretty brutal,” said one student, who said she would have to talk to her mom about what the new fee meant for her finances.

Since 1994, students at UCLA have been allowed to pay their bills using credit cards without any fees.

The change comes nearly six months after Gov. Jerry Brown unveiled plans for a $500 million cut to the U.C. system as part of an effort to close California’s mounting budget deficit.