Research Shows Institutions Benefit from Payment Plan Use

In Brief:

  • Students who utilize a payment plan are nearly 8% more likely to retain from semester-to-semester
  • Anonymized data came from 2-year and 4-year institutions, with a total of 539,000 student records being analyzed over a 5 to 15 year time span
  • Using Chi-Square analysis, Nelnet Campus Commerce data scientists determined a statistically significant variance regarding the effect and impact payment plans have on an institution

Keanu Harris

Data Scientist

Before joining Nelnet in 2018, Keanu spent three years working at Regis University as a Data Analyst for the Office of the Provost. His extensive knowledge in higher education data has served him well in working with NBS performing analyses and data modeling. Keanu graduated with a Masters degree in Data Science in 2017 and has been working with Nelnet for the past two years. When not building models for Nelnet, Keanu is taking evening classes to become an EMT.

Share

Insight type: White Paper

Analysis overview

Nelnet Campus Commerce worked with participating institutional partners to evaluate the impact payment plans are having on their campuses. The participating institutional partners provided payment plan data that did not include names or other personally identifiable information (PII). Data was subjected to Chi-Square, a single number that shows how much difference exist, in all feasible samples.

  • While working with institutional partners, Nelnet data scientists empirically measured the impact of payment plan use at an institution to identify a quantifiable positive correlation
  • 2-Year Institutions – 70,000+ student records, over 5 years
  • 4-year Institutions – 469,000 student records, over 15 years

Institutions benefit from payment plan use

The study concluded that institutions are positively impacted from the use of payment plans. With matriculation rate being more crucial than ever, offering a variety of ways to pay for education is important to students and parents.

  • Student retention was impacted the most by payment plan usage – positively impacting the institution’s persistence rate
  • Students utilizing payment plans completed an additional six (6) credit hours over the course of their enrollment at a 2-year college and nearly 12 additional (11.73) hours during enrolment at 4-year institutions
  • On average, only 1 in 5 students utilize a payment plan, meaning the opportunity to increase their usage is substantial

Download Research Overview