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Tuition Payment Plans

Tuition payment plans, also known as billing plans, allow families to spread the tuition payments over several months. In effect, these payment plans offer cash-flow assistance.

The most common types of tuition payment plans are academic year plans, which split the tuition bill into 9 or 10 equal monthly payments. Although these plans do not charge interest, they usually charge a flat fee, which is effectively a form of prepaid interest. For example, a $100 fee on $10,000 in tuition paid over a period of 9 months is the equivalent of 1.4% interest. If paid over a four month period, it is the equivalent of 3.3% interest. The following table illustrates the equivalent interest rates on $10,000 in tuition for a variety of fee amounts.

Fee	4 months	9 months	12 months
$50	1.5%	0.7%	0.5%
$75	2.3%	1.0%	0.8%
$100	3.3%	1.4%	1.0%
$150	5.2%	2.4%	1.8%
$200	7.2%	3.3%	2.5%
$250	9.3%	4.3%	3.3%

FinAid's Upfront Fee Equivalent Interest calculator can be used to determine the equivalent interest rates for other tuition and fee amounts and repayment terms.

Some schools may require the family to pay for tuition refund insurance, which will increase the balance by 1% to 5%.

Tuition Installment Plans

FACTS Tuition Management
FACTS Tuition Management offers tuition management and budgeting services for educational institutions at all levels, from pre-school through post-graduate institutions.
FACTS Tuition Management
121 S. 13th Street, Suite 201
Lincoln, NE 686508
Phone: 1-800-624-7092
Fax: 1-402-466-1136
Email: info@factsmgt.com

Sallie Mae TuitionPay
Sallie Mae's TuitionPay lets you pay your tuition bill in small, monthly installments at more than 2,500 schools nationwide. The service is interest-free. There is a low annual enrollment fee around $50. (Acquired by Sallie Mae in 2003.)
TuitionPay / Sallie Mae Corporation
PO Box 816
Swansea, MA 02777
Phone: 1-800-635-0120 or 1-508-235-2800
Email: info@tuitionpay.com

Smart Tuition
Smart Tuition provides tuition payment management services for private schools. Parent inquiries should be directed to 1-888-868-8828. School inquiries should be directed to 1-866-395-2986.

Tuition Management Systems
Tuition Management Systems provides tuition payment programs for more than 250,000 students and families annually at more than 1,200 schools, kindergarten through college. Their interest-free monthly payment option allows students and families to spread educational costs over a several months, without interest and without borrowing. (There is an enrollment fee that ranges from $30 to $60, depending on the school.) (Founded 1985. Acquired by Keybank Education Resources in 2007. Acquired by First Marblehead in 2010.)
Tuition Management Systems
171 Service Avenue, Second Floor
Warwick, RI 02886
Phone: 1-800-722-4867
Fax: 1-401-736-5050
Email: info@afford.com

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