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1 PAYMENT PLANS A Source of Revenue Or A Source of Aggravation.

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Presentation on theme: "1 PAYMENT PLANS A Source of Revenue Or A Source of Aggravation."— Presentation transcript:

1 1 PAYMENT PLANS A Source of Revenue Or A Source of Aggravation

2 2 Lehigh University General Info Undergraduate Students # of Undergraduate Students –4,619 Full-time – 60 Part-time Cost of Attendance = $42,190 per year (or $21,095 per semester) 51% receive University-funded aid 69% receive aid from some source 68% live on-campus

3 3 UG Payment Plan Features Must re-apply each semester 4 Payments per semester –1 st of July, Aug, Sept, & Oct for fall –1 st of Dec, Jan, Feb, & March for spring $45 Fee per semester Allowable expenses: Tuition, academic fees, room & board (including greek charges), and debit card Must be netted against any financial aid

4 4 Payment Plan Cycle Application mailed 1 st week of June (Nov) Application & 1 st payment due July 1 st (Dec 1 st ) Semester bill mailed by July 10 th (Dec 10 th ) –Includes advance credit for 3 installments and charge for 2 nd installment 3 rd installment billed Aug due Sept (billed Jan due Feb) 4 th installment billed Sept due Oct (billed Feb due March)

5 5 Correspondence Letter Instructions FAQs Application Form: 2 part carbonless Meal Plan Changes Form Form to add Debit Card dollars Return envelope (different color) Enclosed in 9 x 12 envelope Mailed using presort 1 st Class (Indicia)

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9 9 Outcome 24 % UG students participate Generates over $100,000 per year in fees Gives another payment option –Alternative for parents to manage cash flow –Another tool for problem situations Get 50% payments before classes start Written plan for financing semester costs

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11 11 TTVDCAT – Detail Category Code Validation Create category INS for installment related detail codes

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13 13 TSADETC – set up Detail codes E1CR – advanced credit –Debit Temporary/Future Receivable –Credit Accts Receivable Unapplied Pymt E1IN – installment charge –Debit Accts Receivable –Credit Temporary/Future Receivable E1AF – application fee –Debit Accts Receivable –Credit Revenue

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15 15 TSAISTC – Installment Plan Code Control Form Create code for semester (for example: E1) –Plan Detail Code = advance credit –Principal Detail Code = installment charge –Service Charge Detail Code = fee –Amount = default amount of fee per plan –Term = default semester plan will post to –First Due = date 1 st installment is effective –Payments = # of payments in the plan –Pay Period = # days between effective dates for installments

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17 17 Raymond applies Expenses for semester = $19,330 Scholarships = $5,000 Payment Plan Amount = $14,330 4 Monthly Payments = $3,582.50

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20 20 Special Challenges Turnaround time between receipt of application and generation of semester bill Late applications –Havent received Financial Aid Package Increased volume of checks to process Extra phone calls: –Is this a bill? –Youre charging me twice!

21 21 Lehigh University General Info Graduate Students # of Graduate Students – 971 Full-time – 1,098 Part-time Cost of Tuition = $510 to $970 per credit 65% Grad Tuition paid via Awards/Grants 7% Grad Tuition paid by Employer/Govt 9% Grad Tuition paid by Payment Plans Permitted to pay via Credit Card

22 22 2 Options 3 Payment Plan –$20 fee –40% due before classes start, 30% by Oct 1 st (Mar 1 st ), 30% by Nov 1 st (Apr 1 st ) Deferment Payment Plan –$50 fee –100% of Current Semester –Must have employer reimbursement benefit plan

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26 26 Outcome 5% of Full-time students participate in Payment Plan (3 Payments) 11% of Part-time students participate in Deferred Payment Plan Generates over $30,000 per year Puts part-time students in the classroom that might not otherwise attend

27 27 Special Challenges Student withdrawal during 1 st Semester Student not obtaining necessary grade to be reimbursed by employer Deferment due after start of following semester (or graduation)

28 28 A Source of Revenue or Aggravation ? BOTH !

29 29 Reasons for an In-House Program Ultimately a payment problem is ours to resolve Tool to attempt to standardize solution Positive relations with the more affluent Earn a little revenue

30 30 Future Enhancements? Installment # designated in description Customized preprinted application form for each student (or on-demand) On-line, interactive application form

31 31 Questions Michael King Bruce Charles Lehigh University Office of the Bursar 27 Memorial Drive West Bethlehem, PA (610)


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