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 while taking out loans comes with debt and interest payments that will follow them after they graduate. Both option 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 a simple example of how a monthly payment plan can save money in the long run compared to loans. Even at low interest rates, long term loans will add up 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.
Giving students a sense of ownership over their plan makes for more on-time payments than with students without the 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 taking time off of work to set up a payment plan in person and are available 24/7. Online payments can also be made through any smartphone or tablet! Additionally, all their payment records are securely stored online for easy and instantaneous access. There is no need for them to call your office or wait for a statement in the mail when they can login and view their statements from any electronic device.
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 and the more likely the student is to 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!