In Brief:
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With the cost of tuition rising steadily and the economy in a state of uncertainty, many higher education students are struggling to stay enrolled and debt-free.
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Past Due Payment Plans can help your students pay down past balances, avoid collections, and eliminate the need for your business office to get involved.
Blog Post
Higher education is an essential investment for anyone seeking to advance their career prospects and build a better future. However, with the cost of tuition rising steadily and the economy in a state of uncertainty, many students are struggling to stay enrolled and debt-free. One powerful solution that your higher education institution can consider offering to students is the option of Past Due Payment Plans, like those offered by Nelnet Campus Commerce. With this type of payment plan, your students can pay down past-due balances, helping them stay enrolled, avoid collections, and eliminate the need for your business office to get involved. In this blog, we will explore the benefits of past due payment plans for both your students and institution.
Benefits for your Students
Lessens financial stress
Students in higher education often experience financial stress when it comes to paying their tuition. This stress can be magnified when students fall behind on their payments and face the possibility of being dropped from classes or even having their debt sent to collections. By offering past due payment plans, your institution can provide students with a payment option that lets them stay enrolled in classes while managing their financial obligations – reducing their financial stress.
Flexible payment options
Past due payment plans can offer flexible payment options to students, allowing them to pay down their past due balances over time. For example, students may be able to make smaller payments over an extended period, or they may be able to set up automatic payments to make the process easier. Additionally, with this type of payment plan students can avoid accruing additional interest or fees, making it easier for them to eliminate their debt and achieve financial stability.
Avoid collections
When a student misses a payment, it can trigger a series of actions that may lead your institution to sending the student’s account to a collections agency. This can have negative consequences, such as damaging credit scores and increased fees. With past due payment plans, your institution provides a way for students to pay down their past-due balances before they become delinquent, keeping them out of collections.
Benefits for your Institution
Increase cash flow
Past due payment plans may provide a steady stream of cash flow to your institution, which may help ensure there are financial resources available to operate effectively and to invest in staff, facilities, and other important areas. This is particularly important for institutions that rely heavily on tuition revenue to fund their operations. The increased cash flow from past due payment plans can help institutions to weather unexpected financial challenges, such as budget cuts or changes in enrollment numbers. Additionally, they may provide your institution with the financial stability needed to plan and invest for the future without having to rely on uncertain funding sources.
Reduce administrative workload
Offering past due payment plans may significantly reduce the administrative workload at your institution. When students fall behind on their tuition payments, it often requires a substantial amount of administrative time and resources to follow up with each student individually, negotiate payment arrangements, and manage the collections process. With past due payment plans, your business office can avoid having to chase down students for missed payments, freeing up valuable time and resources to focus on other important tasks. Not to mention, eliminating the need for outside collection agencies, which can further reduce the amount of administrative work and expenses.
Improve retention rates
By providing students with a way to pay down their past due balances and stay enrolled in their courses, past due payment plans may help increase enrollment retention rates. This is a benefit to both your students and institution by ensuring that students are able to complete their academic programs and obtain their degrees – reducing the likelihood of students dropping out due to financial difficulties. By demonstrating a commitment to helping students overcome financial challenges, institutions can enhance their reputations and attract and retain students who are looking for an institution that prioritize student success and well-being.
Learn more about Nelnet Past Due Payment Plans
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Author: Nelnet Campus Commerce
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