The benefits of a payment plan are obvious for students. Tuition is broken up into manageable payments over a period of time, yet they do not have to worry about the interest or debt from loans. But has your business office considered the value payment plans provide to them?
Payment plans facilitate a steady stream of revenue on a predictable schedule for your office staff. Your staff can process ongoing monthly payments rather than dealing with an influx of payments at – or after – the deadline.
Students on payment plans are less likely to turn into delinquent accounts. This speaks for itself in that students in a tight financial situation are more likely to continue their monthly payments as opposed to those overwhelmed by a full tuition bill.
Less delinquencies also eases the workload associated with accounts that been put on hold or given late fees due to their delinquent status. Eliminating a scenario where a students cannot register for classes due to their account being placed on hold will eliminate the need for that student to call the office for help in unfreezing their account.
While most colleges offer payment plans, many are underutilized and are not well advertised to students and their parents. Is your business office missing out? To reap the benefits of payment plans, your school can work to increase payment plan adoption by students and their families. For advice on how to do so, you can read Five tips to Encourage Students to use your Online Payment Plan.