Payment Plans Support Campus Financial Health

In Brief:

  • In 2020, Nelnet data scientists teamed with a number of our partner institutions to empirically measure the impact of payment plans on a number of key data points, for both 2-year and 4-year institutions.

  • On average, students utilizing payment plans took an additional 11 credit hours at their institution.

  • Payment plans allow students to better manage their finances and institutions to more accurately manage receivables, thus increasing the financial health of the campus.

Insight type: White Paper

Payment plans have been a staple for many institutions for years, providing students with a better way to manage costs by budgeting payments for tuition and fees over time. While the benefits of these plans for students may seem straightforward, calculating the impact for the institutions that offer them can be challenging to quantify.

In 2020, Nelnet data scientists teamed with a number of our partner institutions to empirically measure the impact of payment plans on a number of key data points, for both 2-year and 4-year institutions.

Based on the data points provided across all participating institutions, the study focused on examining payment plan impact on three primary student outcomes:

  • Student Retention
  • Average Total Credits
  • Graduation Rates

The data that was discovered showcases the success of payment plans through various student demographics.