Q What Are Some Hidden Expenses That Might Surprise Students Once They Are In College Any Advice On How To Tackle Those Expenses
Michael Lux: The cost of textbooks is absurd. Often professors will teach from a book that they wrote and require students to have the latest edition. One of the best ways to save money is to ask your professor if they are ok with you buying a previous edition of the book. An older version can be bought very cheaply online. You can also save money by splitting the cost of a book with a classmate or trying to track one down using the library.
Sean Moore: Expenses that may surprise students arent usually hidden they just dont seem to be a big deal until they sneak up on you.
These can include books, travel, insurance, and food. All of these expenses are accounted for when a school publishes their Cost of Attendance but far too often families focus only on the big-ticket items like tuition and housing. Although schools include these costs in their COA, those are averages. Someone that lives across the country may have higher than normal travel costs. Eating off campus can make food costs soar.
Other costs not accounted for may include Greek life, study abroad, new clothing , and off-campus activities.
Advice to tackle these: Make a budget. Get the true TOTAL costs of your school. Assess your needs and adjust your budget upward from there.
Why Choose A Tuition Payment Plan Rather Than A Loan
If youre able to make a sizable payment , a tuition payment plan is a much better option than taking on student loans.
Lets again imagine your annual tuition payment is $10,000. If you took out a 10-year student loan at 5%, you would pay a total of $12,727.86 over the course of the ten years. If you opted instead to pay the $10,000 in monthly installments with a $100 enrollment fee, you would total $10,100. Thats a savings of $2627.86.
In addition to saving thousands of dollars on interest, payment plans ensure you are able to graduate debt free. That peace of mind is incredibly valuable, and something you will thank yourself for later!
Investigate Schools That Accept College Credit From Other Sources
Having a few dozen credit hours on a college transcript before even setting foot on campus can be very cost effective. Advanced Placement courses are free to take in high school the exam is a minimal fee compared to the cost of the college class. And credits from a local community college are a fraction of the cost of the same courses at nearby major universities.
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Tuition Installment Plan Enrollment
There are generally two options to enroll:
- Students first log into the schools website and look for a payment plan option in the section of the website that shows their bill. Then, theyll answer a series of questions about payments, such as who the authorized payer will be. Its usually the student or the parent. The student may then be redirected to finish the process through a third-party installment plan provider, such as Nelnet or Heartland ECSI.
- Go directly to the tuition installment plan provider and select your school from the list. Rather than guess who the installment provider might be, you can contact your schools financial aid or bursars service to find out.
Youll typically have to pay an enrollment fee or application fee. For instance, the City University of New York has enrollment fees as low as $25 per semester, while George Washington Universitys enrollment fees start at $45 per semester.
Payment plan enrollment dates may vary, and enrolling later may mean larger and fewer payments. It could also mean a higher enrollment fee. For instance, the fall 2020 semester enrollment period at George Washington University in Washington, D.C. began on June 11. If you enrolled after July 21, you would have been required to pay an $80 enrollment fee, or $35 more than if you enrolled sooner. Plus, youd have had to make a down payment of 25% of estimated semester charges.
Take Advantage Of Your Employers Tuition Policy To Help Pay Relevant College Courses
What if you are already working but still wanting to pursue further education. Well, first of all, congratulations for securing a job, and kudos to you for wanting to continue your study!
Many employers offer tuition refunds or support to help their employees pay for college courses that are relevant to their positions. Check with your human resources department to find out about your companys tuition policy. Even if they dont have a formal policy, you should still make a case for yourself. If what you plan to study is relevant for your job and you have proven yourself to be a good employee, then your employer may consider providing you some financial relief. Even if they cant reimburse you, they may give you a few days off to study for your exams. Any perk is good, isnt it?
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Changes To The Nelnet Agreement
I have changed my bank account and address. What should I do?
You need to call Nelnet directly at 1-800-609-8056 to advise them any time you change your bank account, address, e-mail address, or phone number.
I need to change my payment date. Can you help me?
Payment dates are strictly on the 16th of the month, unless the 16th falls on a weekend or holiday. If the 20th should fall on a weekend or holiday, your payment will be attempted the following business day.
I want to change from a checking account to a credit card. What do I need to do?
If there are still payment options available through the payment plan, you will need to go back online and complete a new agreement. It is important to remember to call Nelnet at 1-800-609-8056 to terminate your current agreement. You will create a new agreement for the amount you owe. You will be assessed another non-refundable enrollment fee, as well as a fee for using a credit card. Please remember you may also have to pay an immediate down payment as well.
Is there a way for me to review my agreement online to make sure the proper adjustment has been made?
Yes, when you receive your Nelnet agreement confirmation letter, there is information regarding how to register online and view your account.
Failure To Pay Your Tuition Payment Plan
- Tuition Payment Plan is an approved loan for education, which is non-dischargeable in a bankruptcy court.
- If you fail to fully pay your Tuition Payment Plan, SLCC pursues all financial obligations to the fullest extent of the law.
- SLCC may place holds on your student account, which may include registration, transcripts, grades, and graduation.
- SLCC may also pursue liens against Utah State Income Tax Returns, referrals to collection agencies, and litigation.
- Interest will be charged at the rate of 1.5 percent per month on any amount over 30 days past due.
For more information on Tuition Payment Plan, contact 801-957-4480 during business hours or .
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Navy College Tuition Assistance Program
Am I eligible? If youre an active duty sailor or officer , you bet! You become eligible after two years of military service.
What does it cover? The Navy TA program will fund one certificate, certification preparation, or diploma in schools that have signed a Department of Defense Memorandum of Understanding . The institution you are applying for must also be listed on the Department of Veteran Affairs website.
Heres a quick breakdown of how much the program can cover:
- $250 per semester hour
Deferred Student Loan Payments For Active Duty
Need a breather from paying off your loans? You can choose to have your student debt deferred while youre out on active duty, and for 13 months after you return. The government will pay any interest on your Direct Loans and Federal Stafford Loans.
Warning! Before entering into any agreement or shelling out money, make sure that you are transacting with a legitimate representative of the military to avoid falling victim to loan scams.
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Opt For An Installment Plan To Break Down Costs
Now, I know the total I chose to use throughout this blog post may seem way too small. You may face a much larger out-of-pocket cost. However, the monthly payment plan option still shrinks the cost to a much more manageable amount, no matter how you spread it.
Also, that reminds me of more thing that I notice about many families college journeys: Some families dont build a relationship with anyone during the college admission process they do everything online. They dont even realize the possibility of a payment plan exists. Its never too early to start asking questions and getting to know admission counselors at colleges. Nows the time to get started with your rising senior!
A tuition installment plan can make college affordable and better yet, it can help you feel so much better about the cost of college.
Should I Enlist In The Military To Pay For College
Enlisting in the military is a life-defining decision that only you can decide for yourself. Youll need to go through strenuous training as a recruit before you become a soldier, sailor, airman, or Marine. After that, you may find yourself enlisted in new locations that are far from home.
Although the military does pay for college, thats certainly not reason enough to join. You can also consider other affordable options for your education. From finding grants and scholarships to minimizing your college expenses, there are plenty of alternative ways to pay for college.
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Ways A Tuition Payment Plan Can Help You In A Flash
Uh What? I owe how much?
That was my friend Sarahs response to the very kind financial aid lady who walked her through her exit counseling before she graduated from college.
Sarah paid for her entire state university education by herself. When Sarah was younger, a financial planner told her parents, College will be too expensive when shes ready to go off to college. I wouldnt even bother trying to save for it.
So they didnt. The expectation was set: Shed be responsible for every dime, with the exception of an occasional tank of gas to get her back to school.
She took out student loans for everything housing, meals, tuition. Sarah was in debt to the tune of $80,000 by the time she graduated with her sociology degree.
So, get this. Sarahs much-younger sister visited my office when I was working in admission. Her sister wanted to forgo the big state school experience and go to a private college she happened to choose the college where I worked.
As they worked through the financial aid portion of the decision, her parents said, I wish wed thought to ask about an installment plan when Sarah was in school. Things might have been different for Sarah they admitted that theyd simply been paralyzed by the final out-of-pocket costs and turned to student loans because thats how people afford college.
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What Happens If You Dont Make Your Payments
The consequences for not making payments will depend on each school and how a payment is missed. If a payment is submitted, but it is returned for insufficient funds, there will usually be an additional fee, often around $30 or so. Additionally, the school might reserve the right to terminate the tuition payment plan if a payment is returned on multiple occasions. Once the tuition payment plan is terminated, any remaining balance will be immediately due.
When a student misses a payment, a common result is the imposition of a monthly late fee for each month the payment is late plus a hold placed on the students account, which will prevent them from registering for classes or graduating.
When people think about college costs, the first thing that comes to mind is tuition. But in many cases, other significant costs can rival tuition in terms of financial burden on the student. And often, financial aid or scholarships will not cover these costs.
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When Should You Apply For A Tuition Installment Plan
Dont wait until the last minute to apply for a tuition installment plan.
Discuss tuition installment plans with the college before school begins. Not all colleges offer tuition installment plans, so if this is a really important issue for you, check to see if your chosen college offers a tuition installment plan before your student enrolls. Use Collegedata.com to find out if the college of your choice offers a tuition installment payment plan. Choose the Financials tab on the College Profile.
If you enroll your student at a college that does not offer a tuition installment plan, the colleges financial aid office may be able to refer you to a private commercial tuition-management company that offers an independent third-party tuition installment plan.
Another option is to use a private student loan to help fill a college savings gap. Be sure to shop around to find the best features and interest rates.
Other Financing Options To Pay For College
If you plan on paying for tuition over a number of years, as many Americans do, there is likely a way to pay for college with lower interest than credit cards.
Many universities offer installment payment plans, which enables students and their families to make interest-free, monthly installments toward tuition.
Since interest rates play such an important role in deciding how to fund your college education, you may also consider using a traditional student loan which typically offer lower interest rates and fees. There are a variety of student loan options, ranging from federal to private, each with their own set of terms.
The first step in choosing how to finance college is to apply for financial aid.You’ll need to complete the Free Application for Federal Student Aid every year to see how much aid you are eligible for. This aid will include grants, scholarships, loans or programs like work-study where students can work part-time while attending class.
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Fees Are Cheaper Than Student Loans
True, the service fee could add up to three percent to your bill, but an installment plan is still less expensive than diving headfirst into student loans. Tuition installment plans have a small upfront enrollment fee and do not charge interest.
Thats still lower than the majority of student loan interest rates. For example, a Parent Plus Loan disbursed on or after July 1, 2019, and before July 1, 2020 carries a 7.08 percent interest rate. This is a fixed interest rate.
Makes a monthly payment plan look mighty nice, huh?
You Can Borrow And Pay On An Installment Plan
Still stymied by the idea of paying the full amount on installment? Car payments, mortgage payments, private school tuition, groceries, dog grooming gah! The costs add up fast.
It always seems like theres an extra one-time expense every month at our house. I know how coming up with any extra money can seem like trying to boil the ocean.
If the pinch is too much but you know you want to contribute to your childs college tuition, you can take out a loan such as a Parent Plus Loan or private loans. This could be in addition to opting for an installment plan.
For example, lets say you look at your monthly budget and figure out that you cant quite swing the $1,000 that the installment plan would require but you can manage, say, $400 per month instead. Take the rest out in loans.
Theres no shame in combining tactics. Think outside the box!
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Tuition Payment Plans For College: Pros And Cons
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Personal Savings And Financial Help From Parents Or Other Relatives
If you or your family have savings, tapping into savings is often the next best option to pay for college after youve exhausted scholarship and grant opportunities.
You and your family are expected to contribute if you have assets available and, in fact, when you complete college financial aid forms, you need to provide information about you and your parents income and financial accounts to determine your expected family contribution.
However, while using savings is a good way to cover college costs, parents typically shouldnt compromise their retirement security by foregoing retirement savings or cashing in retirement accounts to cover college costs. While there are loans available to pay for a students education, no loans are available to fund retirement and parents dont want to be broke as seniors because theyve spent all their savings on college.
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