Tuition Payment Plans Can Help You Avoid Student Loan
If you are about to have a college bill and don’t want to get bogged down in student debt hell, ask your institution’s finance department for payment plan options.
These installment plans allow you to pay your bill over the course of a semester or academic year rather than in a lump sum. And according to Consumer Reports , “almost every school offers such a plan, and almost everyone is eligible to use such a plan.”
Most of them are interest-free, although some charge a fee , which, according to FinAid.org , usually less than 100 dollars , which is clearly preferable to the accumulation of debt pile. Here is a comparison of the cost of the Tuition Fee Plan vs Edvisors Parent PLUS Loan :
Some allow you to pay an equal amount every month, while others charge an interest rate three or four times a year for each CR. For example, Liberty University offers monthly installments and charges a one-time commission of $ 45 without interest. Rutgers offers monthly plans with eight, 10 and 12 payments, as well as semester plans with a lump sum and no interest.
According to FinAid, if your institution does not offer a plan, you can enroll through a third party:
These plans are typically used by middle and upper class families who will be able to make payments during the school year, but not all at the same time, so they are not a viable alternative for everyone, Edvisors said. What happens if you sign up for a payment plan and are unable to make payments depends on your institution, but Rutgers, for example, will cancel your contract after three months of non-payment. You are still on the hook for any costs incurred and then you will want to speak with your financial aid office to see what options you have.