So I have decided to attended IU this fall, and my parents are just curious if there’s a process in which they can pay tuition/fees monthly? We don’t plan on taking out any loans and would like to explore some of our options, thanks.
Hi. Congrats on your acceptance to IU! Yes, there is a deferred payment option. As long as your account is in good standing you will have a deferred payment option on your bill. Each month you will be told what the minimum payment amount is. You must pay at least the minimum (but can pay more) in order for your account to remain in good standing and have the deferred option the next month. There is a small fee tacked onto your bill each time you defer. Essentially the way it works is in September the minimum amount will be one quarter of your bill (tuittion, residence costs, meal costs, other fees). In October it will be one third of the remaining, in November one half, and then in December you must pay the remaining. Then it starts all over again in January. If you do not select the deferred option or your account is not in good standing then you pay something like 1.5% interest on whatever you owe. With the deferred option you don’t pay interest, just a small fee. If you defer in September it does not mean you are locked into deferring for the remainder of the term. You can pay off your bill at any time. Hope this helps.
So I can defer my payment each month, and decide to pay x amount each month? My parents just want to simply have a flat monthly fee to pay to make it simple
You can’t defer the whole thing each month. If you don’t pay anything you will be charged a 1.5% penalty and your account will not be considered in good standing. Once your account is not in good standing you won’t even be offered the deferred payment option.
Perhaps using a hypothetical example would work best. Let’s say when all is said and done your first bill is $10000. In August, IU will send a bill saying that you owe $10000 by September 10 and that you can select the deferred option. This means that your minimum payment for September 10 is $2500 (one quarter of the total bill) or you can pay any amount between $2500 and $10000. If your parents pay the minimum amount then they will have paid $2500 leaving $7500. If there are no new charges on your bill, then in October you will owe $7500 + $30 (deferred payment fee for the first month). You will now be told that you can select the deferred payment option again and pay a miniumum of $2510 (one third of the bill). Again, if no new charges your November bill will be $5020 + $15 (deferred payment fee for second month) for a totlal of $5035. The deferred option minimum payment will now be $2517.50 (one half of the bill). Then in December you must pay the remainder of your bill. Then it starts all over again in January as tuition, residence, etc. are billed by term.
So, with the deferred option your parents may be close to paying equal payments throughout the semester. It will all depend on if there are new charges added to your bill throughout the semester.