As the college tuition bill comes due, many families consider borrowing, as they may not have the entire balance owed for the semester sitting in their checking account. However, opting instead for a low-cost monthly payment plan through the college can be a reasonable way for a family to use their current cash flow to help pay the bill and decrease their total education debt.

Payment plans can be a smart move because they are interest-free. Plus,some schools offer discounts for enrolling in a full academic year payment plan instead of a single semester plan. Keep in mind, though, that most colleges have an enrollmentfee ranging from $25to $125 persemester.

Here’s an example of a timeline for a family signing up for a payment plan for the fall semester: 

May 1: Deposit deadline; this is the date by which most students will commit to a college by paying a deposit. This is also the date when payment plan enrollment may open. 

Mid-July: Typical final date to enroll for a four-month plan (a four-month plan usually entails auto-withdrawals on July 20, August 20, September 20, and October 20) 

Mid-August: Typical final date to enroll for a three-month plan (a three-month plan usually entails auto-withdrawals on August 20, September 20, and October 20)

Here are key things to keep in mind when considering a payment plan 

• Payment plan fees, payment schedules, and enrollment deadlines vary by school, so check with the Bursar's Office, Cashier's Office, or Student Accounts Office for more information. 

• Start early. Some plans begin as early as May, and late enrollment may require catch-up payments.

• Credit card payments may incur additional fees (2–3%) or not be allowed at all.

• No credit check is required, and plans can generally cover any amount.