1 payment plans a source of revenue or a source of aggravation
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PAYMENT PLANSA Source of Revenue
Or
A Source of Aggravation
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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
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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
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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)
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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)
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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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0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Per
cen
t o
f T
ota
l # o
f P
lan
s
Up to$2,500
$2,501 to$5,000
$5,001 to$7,500
$7,501 to$10,000
$10,001 to$12,500
$12,501 to$15,000
$15,001 to$17,500
$17,501 to$20,000
Over$20,000
Range of $ per plan
UG Payment Plan AmountsFall Semester 2005
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TTVDCAT – Detail Category Code Validation
• Create category “INS” for installment related detail codes
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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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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
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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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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!”
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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
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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
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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
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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)
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A Source of Revenue or Aggravation ?
BOTH !
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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
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Future Enhancements?
• Installment # designated in description
• Customized preprinted application form for each student (or on-demand)
• On-line, interactive application form
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Questions
• Michael [email protected]
• Bruce [email protected]
Lehigh UniversityOffice of the Bursar27 Memorial Drive WestBethlehem, PA 18015(610) 758-3160