Understanding Your Payment Options
Paying for college can be like buying a new car every year. A college education is the second largest investment most people will make. Obviously paying for college can be difficult for most families. Fortunately there are some payment plans that can help you.
1. Sallie Mae – With this plan, you make monthly payments interest free. Typically there is a small one-time fee when you enroll in this plan.
2. 60/40 Payment Plans – with these plans, you pay 60% prior to the start of the start of the semester and 40% at the end of the sixth week of the semester. The 60/40 percentages may vary on some campuses as could the second payment date.
3. Third Party Billing – With this plan, a third party such as a scholarship, government agency, or organization can pay a student’s tuition in full or in part. The advantages of this plan are that you don’t have to put out any money to get reimbursed.
4. College funds – You may have set up a college fund for your children. Some of these are called 529 plans because of the tax code provision that allows contributions to receive a tax deduction. Like third-party billing, these plans can pay tuition directly and not require you to put up the money and get reimbursed.
Whatever plan you choose, be careful to pay off the remaining balance when it’s due. Universities will not let you register for classes or even have an official transcript until your bill is paid in full..