Guide to Choose the Right Tuition Payment Plan

Scholarships, grants and other forms of student aid are not always enough to cover the cost of college. Fortunately, many schools allow students to choose from various tuition payment plans. These plans can be a good option for people who want to avoid borrowing for education. Learn more about different types of tuition payment plans here.

The lump sum plan is the most basic tuition payment plan. The school sends you a bill for tuition, fees and other expenses for the entire year and you pay them with one lump sum payment. This plan is usually only practical for people who have extra cash set aside for college.

Term plans allow students to pay by quarter or semester rather than paying for an entire year's worth of tuition. Bills are typically due at the beginning or near the beginning of each new term.

Monthly payment plans split tuition costs into 12 equal monthly payments. Plans are typically interest free but may require a small enrollment cost that is usually less than $100. This plan is the most practical for families on a budget and students who are working to put themselves through school.

There are also a number of outside companies that will help students and families avoid the need to come up with large lump sums of money to pay college tuition. These companies offer their own tuition payment plans for a fee. Many of them are interest free and allow students to choose from various payment options.

There is no tuition payment plan that is right for everyone. The best thing you can do is evaluate the different options that are available to you and choose the one that makes the most financial sense. When in doubt, ask for a monthly payment plan so that you know you can afford the bill when it comes.