Improve Enrollment at Your Institution by Offering Payment Plans

Helping Remove the Financial Barriers of Getting an Education

Enrollment at higher education institutions can be a challenging and competitive process for both students and institutions. Many students face financial barriers that prevent them from pursuing their education, and institutions struggle to attract and retain students in a crowded education market. In a survey from the National Association of College and University Business Officers (NACUBO), they found of the 329 schools they surveyed, almost 90 percent offer some type of payment plan.

By providing flexible payment options, like Payment Plans from Nelnet Campus Commerce, institutions can make education more accessible to students who might not otherwise be able to afford it, and increase enrollment numbers in the process. Let’s explore the benefits of payment plans for higher education institutions and their students, and how these plans can help to improve enrollment.

#1 Provides Affordability

Higher education is expensive and not all students have the financial means to pay for it upfront. According to a recent study, 77 percent of adults in the U.S. say a college degree is difficult to afford. When an institution offers payment plans, they make education more affordable by breaking down the cost of tuition and fees into smaller, more manageable payments. This can alleviate some of the financial burden on students and their families, allowing them to budget their finances more effectively. By offering payment plans, colleges and universities can also make education more accessible to students who might not otherwise be able to afford it.

#2 Improves Retention

One of the top reasons why students drop out of college is due to financial difficulties. By offering payment plans, institutions can make it easier for students to manage the cost of tuition and fees. Students who utilize a payment plan are nearly eight percent more likely to remain from term-to-term and when a student’s financial stress is reduced, in all probability they will continue their education. Additionally, payment plans can help prevent students from falling behind on their payments and risk being dropped from classes or other financial penalties. Payment plans improve retention as they can contribute to a positive student experience, and when a student is satisfied with an institution they will likely stay enrolled.

#3 Attracts Non-Traditional Students

According to a survey by the National Student Clearinghouse Research Center, approximately 42 percent of college students in the U.S. are over the age of 25, indicating a significant presence of non-traditional students in higher education. While many non-traditional students may not have the financial resources to pay for tuition upfront or may have irregular income streams, they should not be overlooked. Payment plans can offer flexible payment options that make higher education more accessible to these students. Even offering a simple payment plan, like Nelnet’s Actively Managed Payment Plans, allows students to pay in installments throughout the term can be attractive to students who might otherwise be unable to attend college.

#4 Strengthens Reputation

Offering payment plans can give an institution a stronger reputation as being student-centered. Showing that an institution is committed to making higher education more accessible and affordable to a wider range of students, which can be seen as a positive reflection of its values and mission. This can attract more students who might not have considered the institution otherwise, helping to diversify the student body and improve its reputation for inclusivity. Furthermore, offering payment plans can enhance the reputation of an institution by showing it is financially stable and has resources to support its students. This can reassure prospective students who are concerned about the financial risks associated with higher education.

#5 Expands Accessibility

Accessibility to higher education can be expanded to those of diverse backgrounds thanks to payment plans. When an institution offers payment plans, it can make it possible for students who might not have the financial means to pay for tuition and fees upfront to still pursue higher education. This can be especially important for students from low-income backgrounds, who may not have access to the same financial resources as their peers. Payment plans can also help address the financial barriers faced by students from underrepresented communities, who may face additional challenges when it comes to accessing higher education. By providing flexible payment options, institutions can help to reduce financial stress and make it easier for students to stay enrolled and succeed in their studies.

At Nelnet Campus Commerce, our Payment Plans can help keep your students enrolled by allowing them to budget their tuition costs over time. We offer several different options, from Actively Managed Payment Plans to International Payment Plans, to Past-Due and Long-Term Payment Plans; we have payment options for every student’s needs. Users have 24/7 access to view current balances, make changes, and manage their accounts. And if they fall behind on their payments, our plans can help them get back on track. Payment plans can reduce financial barriers and provide support to students, helping to ensure that all students have the opportunity to stay enrolled and pursue their academic goals.