PAYMENT PLANS A Source of Revenue Or A Source of Aggravation
Lehigh University General InfoUndergraduate 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
UG Payment Plan Features • Must re-apply each semester • 4 Payments per semester • 1st of July, Aug, Sept, & Oct for fall • 1st 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
Payment Plan Cycle • Application mailed 1st week of June (Nov) • Application & 1st payment due July 1st (Dec 1st) • Semester bill mailed by July 10th (Dec 10th) • Includes advance credit for 3 installments and charge for 2nd installment • 3rd installment billed Aug due Sept (billed Jan due Feb) • 4th installment billed Sept due Oct (billed Feb due March)
Correspondence • Letter • Instructions • FAQ’s • 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 1st Class (Indicia)
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
TTVDCAT – Detail Category Code Validation • Create category “INS” for installment related detail codes
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
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 1st installment is “effective” • Payments = # of payments in the plan • Pay Period = # days between “effective” dates for installments
Raymond applies • Expenses for semester = $19,330 • Scholarships = $5,000 • Payment Plan Amount = $14,330 • 4 Monthly Payments = $3,582.50
Special Challenges • Turnaround time between receipt of application and generation of semester bill • Late applications • Haven’t received Financial Aid Package • Increased volume of checks to process • Extra phone calls: • “Is this a bill?” • “You’re charging me twice!”
Lehigh University General InfoGraduate 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
2 Options • “3” Payment Plan • $20 fee • 40% due before classes start, 30% by Oct 1st (Mar 1st), 30% by Nov 1st (Apr 1st) • Deferment Payment Plan • $50 fee • 100% of Current Semester • Must have employer reimbursement benefit plan
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
Special Challenges • Student withdrawal during 1st Semester • Student not obtaining necessary grade to be reimbursed by employer • Deferment due after start of following semester (or graduation)
A Source of Revenue or Aggravation ? BOTH !
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
Future Enhancements? • Installment # designated in description • Customized preprinted application form for each student (or on-demand) • On-line, interactive application form
Questions • Michael King mjk4@lehigh.edu • Bruce Charles bdc5@lehigh.edu Lehigh University Office of the Bursar 27 Memorial Drive West Bethlehem, PA 18015 (610) 758-3160
