Financial Aid 101
Financial Aid Officers
Monthly Payment Plans
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Students and families have many choices to help them meet educational expenses that are not covered by financial aid. One great option that many colleges offer is an interest free, Monthly Payment Plan. While there are differences among plans, general features of monthly payment plans include:
- The option to pay educational expenses over time without interest charges.
- A one-time enrollment/application fee (usually $50 - $100)
- Optional insurance (in case of unemployment, disability or life for example) in case the applicant becomes unable to fulfill the terms of the payment plan
How these Plans work
Generally, colleges and universities work with a payment plan company that administers a plan (manages billing, processes payments, and provides customer service to students and families) for the college. The college, through either the financial aid office or billing office, will provide information about this company and terms of the program offered at the school. Many of these payment plan companies have Internet sites that can help answer questions and provide interactive planning tools.
There are two main benefits to using a monthly payment plan:
- No interest charges - These programs provide an interest free option to manage educational expenses.
- Spread out costs over a number of months - Rather than paying educational expenses in one lump sum, these plans effectively spread out payment over the student's period of enrollment.
Who benefits from a monthly tuition plan?
Everyone! Families that have sufficient income can benefit from the "same as cash" price of education while not having to manage one or two large payments per year.
Additionally, these payments may be deductible... (See Tax Cuts). Contact your school for more details.