Using Student Financials, you can create and maintain these types of payment agreements for students with diverse financial needs or responsibilities:
• Deferral contract
• Payment plan
• Third-party contract
• Collection agreement
Deferral contracts are designed for students who, for whatever reason, need to defer payment of charges for a short period of time. Deferral contracts extend the charge due date for eligible charges. You can link multiple students to one deferral contract definition, or you can create individual contracts to accommodate each student’s unique needs.
Use payment plans to offer students the flexibility of paying their education expenses over a period of time rather than in one lump sum. With Student Financials, you have three types of payment plans: calculated, existing, and lump sum. These three differ from the deferral contract in that the deferral contract only adjusts the due and billing dates. The calculated and existing payment plans actually credit the eligible charges.
The calculated payment plan enables you to use item type groups to define eligible charges and use the offset charges feature. Adjustments to student charges can affect this payment plan.
The existing payment plan enables you to manually select individual charges that might be eligible for the payment plan. Adjustments to the student charges can affect this payment plan.
The lump sum payment plan uses the Charge Priority List feature to determine which charges may be paid by the initial lump sum payment. The initial lump sum payment will be posted to the payment plan account type. Adjustments to the student charges will not have an affect on this payment plan.
Third-party contracts are credit agreements between your institution and a third-party sponsor, such as corporations or government agencies. The third party agrees to sponsor one or more students and pays all or part of their tuition, fees, or expenses. The sponsor also establishes all parameters regarding what portion of which expenses it pays.
When a student is linked to a third-party contract, a credit is applied to the student’s account, the receivable is moved from the student's account to the sponsor's account, and the student’s sponsor is sent a bill. This contract type is especially beneficial for students in a retraining program or an employee education program who may not have the cash to pay the tuition and fees in advance and then seek reimbursement. If the sponsoring organization does not pay, the temporary credit is reversed and the student is liable for the payment.
Often, when a student or external organization agrees to repay a past due debt, they are unable to pay the full balance in one lump sum. Use a collection agreement to set up and maintain a payment schedule, produce billing entries, and track receipt of payments.
Upon completion of this lesson, you will be able to:
• Create and link a deferral contract to an account.
• Create and link a student payment plan to an account.
• Recalculate a payment plan contract.
• Create and link a third-party contract to an account.
• Recalculate a third-party contract.
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