Increasing Retention and Stabilizing Receivables
A recent study Nelnet Campus Commerce’s partner, Applied Performance Analytics (APA) determined that nearly 25 percent of students carry an unpaid balance over multiple terms.
On average, 12 percent of students carry over a balance greater than $800, which often results in a referral to collections and prevents re-enrollment.
Keeping students enrolled with Nelnet’s Past Due Payment Plans allows institutions and students to overcome the hardships they face regarding outstanding student balances.
While most students are able to cover the fixed costs of their education, near the start of each term, the variable costs (food, books, lab fees, etc.) can often add up quickly, preventing students from paying their account in full. Applied Performance Analytics (APA), a partner with Nelnet Campus Commerce, conducted recent research on payment plans usage and found that on average, nearly 25 percent of students carry an unpaid balance from one term to another.
|Tier 1 past due balances between $800 and $1,500||Tier 2 past due balances between $1,501 and $2,500||Tier 3 past due balances between $2,501 and $4,500||Tier 4 past due balances between $4,501 and $7,500|
|Average past due balance||1,420||2,475||4,210||6,055|
|Number of accounts||341||767||1,095||1,150|