Understanding Payment Plans
This section lists common elements and provides an overview of payment plans.
|
Field or Control |
Definition |
|---|---|
| Reference Number |
Enter an optional reference number for each student on a particular contract. The reference number entry is for information purposes only and does not appear on the student's charges. |
| Status |
This field displays the current status of the contract. Values are: Active: Select to make the contract available for use. This is the default value for this field until the student has been linked to the contract by posting. After the student has been linked to the contract, the other options become available. Cancelled: Select to remove the student from the contract. Hold: Select to prevent new transfers from the plan account but not to discontinue its use completely. Inactive: Select to discontinue use of the contract. Not Posted: Indicates that a new or changed contract has not been posted. |
Using Student Financials, you can create and maintain these types of payment agreements for students with diverse financial needs or responsibilities:
Deferral contract
Payment plan
Third-party contract
Collection agreement
Deferral Contracts
Deferral contracts are designed for students who, for whatever reason, need to defer payment of charges for a short period of time. Deferral contracts extend the charge due date for eligible charges. You can link multiple students to one deferral contract definition, or you can create individual contracts to accommodate each student's unique needs.
Payment Plans
Payment plans enable you to offer students the flexibility of paying their education expenses over a period of time rather than in one lump sum. Student Financials provides several choices for you to create and process student payment plans. The three types of payment plans are calculated, existing, and lump sum. These types differ from the deferral contract in that the deferral contract only adjusts the due and billing dates. The calculated and existing payment plans defined in this section actually credit the eligible charges.
The calculated payment plan enables you to use item type groups to define eligible charges. Also, the calculated payment plan can use the Offset Charges feature. Adjustments to student charges can affect this payment plan. This payment plan may be available through self-service.
The existing payment plan enables you to manually select individual charges that may be eligible for the payment plan. Adjustments to the student charges can affect this payment plan.
The lump sum payment plan uses the Charge Priority List feature to determine which charges can be paid by the initial lump sum payment. The initial lump sum payment will be posted to the payment plan account type. Adjustments to the student charges will not have an effect on this payment plan. This payment plan may be available through self-service.
Third-Party Contracts
Third-party contracts are credit agreements between your institution and a third-party sponsor—typically, corporations or government agencies. The third party agrees to sponsor one or more students and pays all or part of their tuition, fees, or expenses. The sponsor establishes all parameters regarding what portion of which expenses it pays.
When a student is linked to a third-party contract, a credit is applied to the student's account, the receivable is moved from the student's account to the sponsor's account, and the student's sponsor is sent a bill. This contract type is especially beneficial for students in a retraining program or an employee education program who may not have the cash to pay the tuition and fees in advance and then seek reimbursement. If the sponsoring organization does not pay, the temporary credit is reversed and the student is liable for the payment.
Collection Agreements
Often, when a student or external organization agrees to repay a past due debt, they are unable to pay the full balance in one lump sum. Use a collection agreement to set up and maintain a payment schedule, produce billing entries, and track receipt of payments.