How to Increase Participation in your Online Payment Plan

With the introduction of an online payment plan, your school can benefit from increased participation while reducing delinquent payments. Parents and students also stand to benefit from the ease of online payment plans and the financial flexibility that comes with it. In order for your school to most effectively offer an online payment plan (and reap the benefits from online and automatic payments), consider implementing the proven tips below:

Provide a Value Illustration – Paying tuition in a lump sum can be a financial burden for students. Students who take out loans incur debt and interest payments that will follow them after they graduate. This can be overwhelming, and a payment plan offers a much needed middle ground that can benefit everyone involved.

In order to better illustrate the benefits of a payment plan, break down the numbers. For example, show a simple comparison of the cost of a monthly payment plan versus a long term loan. Even at low interest rates, loans compound interest quickly and are a long term liability. A simple yet concrete illustration with real numbers will provide a more appealing view of the big picture.

Offer Flexibility – Nothing is more convenient than a plan tailored to a student’s specific situation. Schools that offer multiple payment plans – as well as schools that offer flexibility within plans – tend to have the greatest adoption rates among their students.

Give students a sense of ownership over their plan. This makes for more on-time payments compared with students without payment plan flexibility. A student who has picked out the payment plan that is right for them feels in control of their financial situation.

Connect with their Lifestyle – This generation deals largely with credit/debit, online, and mobile payments. By accepting debit or credit cards, you allow students to pay with their method of choice. By offering automatic withdrawals from a linked bank account, you offer convenience and ease of payment. Both options eliminate the need for waiting in line or making a payment in person. Online payments can also be made through any smartphone or tablet! Additionally, all student payment records are securely stored in the cloud for easy and instantaneous access. There is no need for students to call your office or wait for a statement in the mail. Rather, they can login and view their statements from any electronic device, 24/7.

Deal with Overdue Accounts Quickly – A timely response is the single most important tool in reaching out to past due accounts. The further behind an account falls, the less urgent the payment seems. Thus it is more likely the student may default or drop out. Keep in mind that connecting with the student should not come off as a collection call! You want to work with the students and in their best interest. Your first question should be “How can we help?” If you can offer a manageable plan for the student to pay, the risk of delinquencies falls greatly.

Compuwerx is proud to empower schools in reducing delinquencies, increasing on-time payments, and creating an easy and convenient payment plan system for schools, administrative staff, students, and parents. Contact us today with questions or to schedule a free demo!