That’s just one of the benefits of choosing a tuition payment plan. Your remaining balance of $2,550 is split into five equal monthly payments of $510.ĭividing the cost of education into more manageable monthly payments makes it easier for students to achieve their goals without accumulating debt. Your $850 down payment is deducted from your total balance of $3,400. That $1,000 you have saved can be used to cover these costs. The tuition payment plan charges a $30 service fee and requires a 25% ($850) down payment at sign-up. Instead of applying for a student loan, you decide on a five-month payment plan. With this assistance, your total bill for the semester is now $3,400. After filling out the FAFSA ® form, you received a Pell Grant award of $1,600 for each semester. You’ve saved up about $1,000 to help with costs, but you know that won’t be enough. Let’s say you’re planning to attend a university full time next semester, and the total cost for the semester is $5,000. If you’re wondering how a payment plan functions, we’ll take a look at an example. Many universities have their own system for payment plans, but if your school doesn’t, you might be able to use a third-party service. Make your payments on time to avoid late fees. You can also choose debit or credit card payment for an additional fee. Most payments are collected automatically from your bank account. Some colleges require an initial deposit of 20% to 50% of your total balance. Typically, you’ll need to pay a percentage of the tuition up front. View the total cost and select the payment plan option when you get to the billing section. Enroll in your classes for the semester by the registration date. Compare that with how much you’ll need for the year or semester. Budget how much you can comfortably contribute to your tuition payments each month. This includes not just tuition but also related expenses like books and room and board. Estimate your total cost of attendance.When a tuition payment plan is available, however, that can be a good option to close the gap between your bill and your financial aid package. It’s important to borrow only what you need, exhausting other free or low-cost opportunities such as scholarships and grants first. Taking on loans also requires responsibility on the part of the borrower. And if you borrow unsubsidized loans, the interest begins accruing right away. Student loans are one option to close the gap, but the loans come with interest rates, possible credit checks and longer repayment terms. How do tuition payment plans work?Įven when you’re awarded scholarships and grants, it might not be enough to cover your full tuition. While it’s never fun to pay enrollment fees, they ultimately save you money: Enrolling in a payment plan means you’re not accruing interest as you would with a student loan. Signing up for a tuition installment plan typically involves an enrollment fee that could be from $15 to $200. Other schools offer plans that break up the total cost into two or three payments. Some universities offer payment plans that cover the entire academic year. Payment plans are short-term options, lasting from a few months to one year depending on what a given school offers. You might also see these called deferred payment plans or tuition installment plans. Keep reading to find out what a tuition payment plan is and how it could help you manage your college tuition bill.Ī tuition payment plan breaks up your college tuition bill into equal payments across the semester or academic year. While this option is not available at all universities (or at University of Phoenix specifically), it can be helpful to know what’s out there. Tuition payment plans, which allow you to make payments toward your tuition over several months, are an alternative. On the other, the prospect of student loans and their interest-accruing debt can feel daunting. On the one hand, students may find their financial obligations prevent them from paying the tuition bill outright. Going back to college is a chance to improve your career opportunities, but figuring out how to pay tuition can be an obstacle for many. University of Phoenix doesn’t offer a tuition payment plan, but there are other ways you can save money on your degree.Only one in five students uses a college tuition payment plan, so other options (including scholarships, tuition assistance and responsible borrowing) can be helpful when a tuition payment plan isn’t available or the right fit.Payment plans often require a down payment of 20% to 50% of the total cost and can significantly reduce student loan debt.Generally, they divide the total cost for the year or semester into monthly installments that end when the year or semester is done. Tuition payment plans are available at select universities.
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