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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

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f P

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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 Kingmjk4@lehigh.edu

• Bruce Charlesbdc5@lehigh.edu

Lehigh UniversityOffice of the Bursar27 Memorial Drive WestBethlehem, PA 18015(610) 758-3160