A Lifeline to Tuition Payment Success – Past Due Payment Plans

The cost of higher education has been on an upward trajectory, outpacing inflation and placing immense financial pressure on students. Since 2020, the cost of tuition and fees has increased 4.7 percent. Students face additional expenses for textbooks, accommodation, and living arrangements, all contributing to their financial strain. Not to mention the reasons behind tuition prices increasing – growing demand for education, rising financial aid, and lower state funding, just to list a few.

When students struggle to keep up with their payments, the consequences can be severe. Financial stressors often lead to decreased academic performance and increased mental health issues. Research from the Ohio State University’s National Student Financial Wellness Study found that 60 percent of college students experience financial stress stemming from the fear of being unable to meet tuition costs. Additionally, late fees, penalties, and accumulating interest only exacerbate the stress of their debt.

An important consideration for students is the impact of missed tuition payments on their credit history. Credit scores play a vital role in securing future loans, favorable interest rates, and various financial opportunities. Falling behind on tuition payments can result in delinquencies, damaging credit ratings and limiting financial options. Students may also be prevented from registering for future classes, obtaining their transcript, and/or being issued their diploma.

Unpaid tuition can have a significant impact on a student’s ability to complete their education. If a student is forced to reduce their course load or withdraw altogether due to missed payments, it can have a substantial impact on their future. Students may miss out on career opportunities, higher earning potential, specialized knowledge, and the personal fulfillment and achievement that completing a higher education degree can bring.

When it comes to helping your students with past due balances, Past Due Payment Plans are a great choice. At Nelnet Campus Commerce, these plans provide students with options to pay down past due balances, helping them stay enrolled, avoid collections, and eliminates the need for your institution’s business office to get involved with contacting students over delinquent payments. Nelnet will work with your institution to offer payment options for your students to select from to repay balances over a term or multiple terms. Additionally, there is no interest when paying back past due balances, giving your students the ability to pay off exactly what they owe and allowing them to regain control of their finances.

Learn more about Nelnet Payment Plans