How Do Tuition Payment Plans Work?
A Tuition Payment Plan is essentially an installment plan, whereby you are allowed to spread out your college bill payments into equal payments, typically over a 10-month period (or a shorter timeframe in some plans). Plans do not typically charge interest; however, most charge a reasonable fee, typically less than $100 for an annual Tuition Payment Plan. Tuition Payment Plans are a reasonable and low cost option for paying the college bill as long as a family has enough monthly resources coming in to cover the installment amount owed. Most plans allow (and some require) a family to set up their payments as an automatic debit from a bank account. Most colleges have established relationships with Tuition Payment Plan administrators; thus, it is recommended that you check with the college first before signing up for a plan, check on any required fees, as well as to determine the actual number of installment payments that your college requires.
A tuition payment plan enables you to take your bill from the college and split it into smaller amounts, payable over a number of months. Families will still need to pay the same amount; however, they will have smaller payments to make over a longer period of time, making it a much more manageable situation for many.
These related articles should prove helpful to those seeking college financing information: