Can You Have Multiple University Payment Plans at Once?

Can You Have Multiple University Payment Plans at Once?

Here, we’ll discuss the various aspects of being on multiple university payment plans that are relevant to four million students. If you’re considering these plans, you’ll want to brush up on their basics, too.

So, can you have more than one college payment plan? Yes, you can, but there are conditions and considerations. You must be aware of them first before making your decision. Keep in mind that multiple payment plans also result in multiple deadlines, amounts, and terms to deal with.

In this article, we’ll tackle things you must know before starting multiple plans. You’ll also know how financial aid works if you’re enrolled in more than one school. Then, we’ll discuss useful tips for managing your tuition in this situation.

What Is a University Payment Plan?

This is also known as a tuition payment plan since it usually only covers tuition and mandatory fees. But ask your college if its payment plan also covers on-campus room and board. Less common are plans that cover required course materials (e.g., books and supplies).

Every university has specific terms and conditions for its payment plans. So, it’s always best to ask your university’s financial services or bursar’s office for specific details.

In general, university payment plans are alternative financial arrangements with these key features.

Allow students and their families to manage their college costs

In the traditional approach, students pay their college bill in one lump-sum amount. Meanwhile, in a payment plan, students pay in smaller installments during the academic term.

Let’s say your college bill – tuition and fees only – totals $5,000 for the fall semester. You may not have $5,000 to pay upfront so you opt for a payment plan. In this case, you’ll agree to pay $1,000 for five months.

Charge zero to low interest, but fees are common

Most university payment plans don’t charge interest. In the above scenario, you’ll only pay $5,000 total for five months. But check your college plan, too, as it may charge a low interest.

Fees, however, are common among payment plans. These are also a cause for concern because these add up. Enrollment, late payment fees, and administrative fees range from $25 to $100.

Most payment plans require automatic withdrawals. You’ll be required to set up automatic bank transfers or credit card charges.

Is It Possible to Be on More Than One Payment Plan?

As stated above, yes, but with conditions. You can be in more than one payment plan if you’re in one of these situations.

Enrollment in two different educational institutions at the same time

Dual enrollment can result in a situation where a student can be on multiple payment plans. Common examples include:

• A high school student enrolled in classes at their high school and a community college. The courses at the community college can be in-person or online.
• A college student enrolled in courses at a four-year university and a community college. Again, the courses can be in-person or online for maximum flexibility.

Let’s say you fall into the second category. You’re enrolled in general education courses at your local community college. Then, you’re also enrolled in a four-year university for your major-specific courses. You can save money using the strategy since community college has more affordable tuition.

In this case, you can request separate payment plans – one in each school you’re enrolled in. These are known as dual enrollment payment plans.

You can work with the bursar’s office in each college to accommodate your budget. But careful planning is a must because late payments and other fees are burdensome.

Transferring between schools

You can end up with two payment plans if you transfer between colleges. This can occur whether you transfer in the middle of the semester or between academic terms.

Let’s say you transferred to a new school before completing the payments on your installment plan at your old school. Then, you enrolled in an installment plan at your new school. You end up with two payment plans with different terms and conditions.

In both cases, managing multiple tuition payments isn’t a walk in the park. You must be organized and proactive in your approach.

Otherwise, you can end up with significant late payment fees and other penalties. Worse, your account can go into collections that, in turn, affect your credit score.

Things to Know Before Starting Multiple Plans

Being on multiple university payment plans has its merits. If you’re a high school student enrolled in community college courses, you have a head start. As a college student enrolled in a community college and a university, you’ll also save money.

But, again, it has its risks and considerations. You must carefully consider them before enrolling in multiple payment plans. Here are the crucial considerations you must plan for.

Different deadlines and due dates

Paying tuition at two colleges means keeping track of different due dates. Since these are separate institutions, there’s little to no coordination between them.

You’ll then end up with a different deadline for each plan. But it’s also possible to have the same due date for multiple plans. Either way, you should pay on time.

And it’s so easy to miss a deadline if you’re keeping track of many. After all, you’re also dealing with deadlines for your school projects and assignments.

Different interest rates and fees

If your payment plans don’t charge interest, good for you. But read the fine print because enrollment, administrative, and late payment fees are common. These add up, especially if you keep missing payments.

However, it isn’t only the money that you’re losing when you miss payments. You can also face registration holds and dropped classes. Getting your diploma and transcripts released can also be an issue.

Different school policies and eligibility

Every college has its specific payment plan rules for college students, too. These start with the eligibility requirements, such as the student must be enrolled at least part-time or half-time. Payment plans may only be available during the fall and spring semesters, not summer sessions.

But don’t let these considerations hold you back. You can set reminders and a budget for monthly tuition payments, among other steps.

How Financial Aid Works With More Than One School

Financial aid comes in many forms – federal and state aid, scholarships, and grants are common. All types of financial aid reduce out-of-pocket costs for students and their families.

There’s a common misconception among students about financial aid. It’s that financial aid can be used across two or more colleges, such as in dual enrollment.

It isn’t applicable to all, particularly to federal student financial aid. You can only receive federal financial aid through one college. This is true even if you’re enrolled in, say, Penn State and Pennsylvania Highlands Community College.

Yes, you can list up to 20 schools in your online FAFSA. But you’ll eventually choose one as your “home school” for financial aid disbursements.

Let’s say you’re enrolled in two colleges at the same time. Your designated “secondary or host school” won’t directly receive federal financial aid. You can pay for its tuition (i.e., out of pocket), explore scholarships, and/or apply for a payment plan.

However, there are exceptions to the rule. You may apply for financial aid for multiple schools under these circumstances.

Consortium agreements

In a consortium agreement, two or more colleges establish a formal partnership. In it, they coordinate financial aid processing and share enrollment information.

Penn State University and Harrisburg Area Community College have a consortium agreement. New York University and Columbia University also have it for specific programs.

How does financial aid work in consortium agreements? There’s a “home school” that processes and disburses federal financial aid. Then, there’s the “host school,” where a student takes additional coursework but doesn’t disburse financial aid.

Courses at the home and host colleges apply to the degree. Doing so means being on the fast track to completion and maintaining financial aid eligibility.

How does it affect payment plans? You may have a different payment plan in the home and host colleges. Even if federal financial aid is available in the home college, it may not be enough to cover your college bill. You may, however, use financial aid from the home school to pay for host school charges.

State aid and private scholarships

Certain states allow their student financial aid to be used at multiple colleges. This is true at the University of Iowa and California community colleges.

Check if the private scholarship programs you’re in allow for use at multiple colleges. It may be possible if you’re enrolled in a college with a consortium agreement.

Indeed, financial aid and payment plans are viable college payment options. If you plan it well, you can maximize both options to your benefit. Financial aid decreases your out-of-pocket costs, while payment plans make it easier to pay for college.

Tips for Managing Tuition at Two Schools

If you’re wondering how to split tuition between schools, remember these strategies.

Use budgeting tools to stay on track.

Juggling many deadlines isn’t easy, even for a student with great organizational skills. If you’re paying tuition at two different schools, it can get overwhelming.

Stay on top of your due dates by using budgeting tools. YNAB and Mint are excellent for this purpose. Set automated alerts on your smartphone, too. Set the alarm a week before the deadline and every day afterward until the due date.

Communicate with the financial aid offices at both colleges.

Among the best college tuition tips you’ll hear is reaching out to the concerned college offices. You’ll not only receive proper guidance, but you’ll stay updated about your plans.

Avoid late fees with strategic planning.

Late fees quickly add up, especially with many missed payments on one of your payment plans. So, avoid them by making on-time payments. Ask about grace periods, too.

Is This the Right Choice for You?

Not everybody is cut out for the challenges of being on multiple payment plans. Hundreds of dollars in late payment fees and a negative impact on your credit score are no joke. You must decide whether it’s the right choice for you or not.

Here are scenarios when it makes sense to be on multiple payment plans.

• You want to save money on your college education. It is applicable to you if you’re enrolled at a community college and a four-year university at the same time.
• You want to earn your degree sooner. Earning credits at a community college and university simultaneously can lead to it.
• You’re enrolled in college with a consortium agreement. The coordinated enrollment and financial aid process makes it easier to manage multiple plans.
• You have effective organizational and financial management skills.

However, being on multiple plans isn’t for students who:

• Have difficulty staying organized in their finances and college life
• Struggle with bill payments and other financial issues
• Depend heavily on financial aid

If you’re in doubt, talk to a trusted family member, financial advisor, and a financially savvy peer.

Final Thoughts: Make a Smart Payment Plan Strategy

In conclusion, paying for college isn’t an easy task, especially with limited resources. Payment plans make it easier to pay for college through installments.

So, if one payment plan is good, then two payment plans are better, right? Not exactly. You must carefully plan for due dates, interest and fees, and eligibility. Missed payments and their consequences can mess up your college life, even after graduation.

Be sure to consider the value that being on multiple plans will bring to your life, too. If it can reduce the risk of taking out student loans, go for it.

Most importantly, create and follow a smart payment plan strategy. With it, you’re planning for success.