Deferred Payment Plan: To use or not to use?

Parents Forum
1

<p>I'll be paying my own tuition, fees, room, and board (minus scholarships) next year for my senior year, thanks to a job that will cover those costs, and potentially some extra. While I'll most likely have the money handy to cover the first semester (~$3600) from the outset, but I may not have the full amount in hand to pay the Spring bill, as I get paid continuosly on a set amount and tiomefram through August. </p>

<p>My university offers a deffered payment plan for a $30 fee where students pay their bill in three increments. I'm wondering if I could do that, or if it would be a bad idea. It has a fairly extensive application process (references, etc.), but it would make my life much simpler, I think. The other option is to have my parents pay the sum upfront and then pay them back. The thing is about that is that I'm worried they may not "accept" full payment from me. This is my "gift" to them in a way, as they've agreed to help fund grad school if I don't get funding and as a thanks for all the wonderful support, financial and otherwise, they've shown me throughout my education thus far. </p>

<p>Anyone do the defered payment plan thing? Any thoughts?</p>

2

<p>Have your parents pay. They will be giving you money for the rest of your life. Might as well get use to it.</p>

<p>Other than that, if you need the payment plan, you need the payment plan. If $30 gives you peace of mind (so you are not starving), then spend it.</p>

3

<p>If you can only do the payments if you get the payment plan, then go ahead and do it. It’s too bad they charge the $30 for it. I wonder if they’ll waive it for you if you ask them to after telling them your financial situation.</p>

<p>I like your attitude towards what your parents have done for you.</p>

4

<p>We use the payment plan. Yes, there is the fee, but parceling out the payments monthly (for 10 months in our contract case) is just better for our budgeting than paying for each term up front. </p>

<p>These plans are quite good. You can arrange for an auto withdrawal from a checking account at the chosen date. </p>

<p>For us, it has worked well.</p>

5

<p>Considering the interest you would get by leaving it in the bank and paying monthly is most likely greater than $30, it only makes sense to go with the plan.</p>