Learn how to utilize monthly payment plans to help pay the college bill over a set amount of time. For more information, read our article on monthly payment plans.
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[00:00:00] When I talk to parents or students about how they can pay for college, I always ask if they’ve heard of a monthly payment plan, and it’s surprising how often the answer is no. Monthly payment plans are a great way to pay what you can out of pocket from your current salary towards your college bill.
Most colleges offer them. Here’s how they work. Colleges partner with a third-party provider to offer these plans to you, and a one-time fee may be charged when you sign up. Most schools do not charge interest, although some do, so be sure to check with the financial aid office on that. The term will likely be for 10 to 12 months if you’re paying for an entire year or five to six months if your plan only lasts for a semester.
And once you’re signed up for a monthly payment plan, you can set your payment amount for whatever you can afford. Now, I don’t know many of anyone who can pay the full balance due for a year from what they earn, but it is worth it to pay what you can out of pocket because every dollar you pay in a [00:01:00] monthly payment plan is a dollar you won’t have to borrow.
Talk to your college financial aid office for more information about signing up for a monthly payment plan. And if you have questions on paying for college, call us at 800-449-MEFA or email us at [email protected].
