If you have a college tuition bill coming due soon and dont want to get stuck in student debt hell, ask your schools financial office about its payment plan options.
These installment plans let you pay the bill over the course of a semester or school year, rather than upfront in one lump sum.
And according toConsumer Reports, almost every school offers one, and just about everyone qualifies to use such a plan.
Most are interest-free, though some charge fees, which are typically less than $100, according toFinAid.org, which is obviously preferable to accruing a bunch of debt.
Heres a comparison of the cost of a tuition installment plan with a Parent PLUS loan, fromEdvisors:
Some let you pay an equal each month, while others charge a percentage three of four times a year, per CR.
For example,Liberty Universityoffers monthly installment plans and charges a one-time $45 fee with no interest.Rutgersoffers monthly plans of eight, 10 and 12 payments, as well as semester plans with one-time fees and no interest.
If your school doesnt offer a plan you may be able to enroll in one through a third party, according to FinAid:
FACTS Tuition Management
Higher One
Tuition Management Systems
According to Edvisors, these plans are typically used by middle- and upper-class families who will be able to make the payments throughout the school year, just not all at one time, so theyre not a viable alternative to everyone.
What happens if you sign up for a payment plan and cannot make your payments depends on your school, but Rutgers, for example, will cancel your contract after three months of non-payment.
Youre still on the hook for any costs incurred, and youll then want totalk to your financial aid officeto see what your options are.