<p>D's school just sent info re: a payment plan, for which there is a small fee. Rather than three larger payments due Sept, Jan and March, the plan allows for nine smaller ones starting in July. So we can make July -Aug - Sept payments or the whole thing with one Sept payment; Oct - Nov - Dec payments or the whole thing in Jan; and Jan - Feb - March payments or the whole thing in March. Aren't we better off keeping the money in an interest bearing account (I know the rates are bad but still) and making the larger payments? Am I missing a benefit here?</p>
<p>they function as a escrow company. Use what ever you want.</p>
<p>Depends on the plan and how many payments you can make.
My d's schools payments are due in July/August for the fall semester and by December/January for spring. Say as an example I am paying $3000 per month for 12 months, and I just began this years payments as of May 1. By the time the first bill comes due in August, I will have paid $12,000 and someone not using the plan will owe 18,000. And in December they will owe the other $18000 and I will have 4 more months to pay it off. So for me it makes sense.</p>
<p>We paid $55.00 for equal payments June - April. No interest. I called the school and they said they have had no problems with the company.</p>
<p>D's school offers the option of using a credit card to pay in the payment plan. Cost is $65 and there are no finance charges or fees. The math on this decision is a slam dunk. Below I am assuming a cost of $50k/year paid over 9 months (payment plan) or 3 installments and an interest rate of 3%. Under the payment plan you would accumulate $500 in interest, with installments you would get only $375. Even if you back out $65 in fees, you still come out ahead with a payment plan. In my case, I also benefit from 1.5% cashback I can get from the credit card, which is another $750.</p>
<p>yeah well my son's school use a third party for credit cards and there is a 2.5% 'convenience fee' for paying on the card. </p>
<p>Blech. </p>
<p>And putting money on the student card that can be used in local stores costs $1.50 if you use a credit card to do so (the student can put cash on the card for no fee)</p>
<p>I use a 10 payment plan through Key Bank at my son's school. They start in June and end in March. I find it the only way to budget for our family and I'm glad it is offered. My sister-in-law was only offered a 4 month plan at her son's state school and finds it very difficult to budget that way.
I also like how easy it was to change and tailor the plan for us during the year. Since I don't have the aid package yet, you can add or lower payments later and the customer service was great.</p>