Administering Payment Plans

This chapter provides an overview of payment plans and discusses how to:

Link students to deferral contracts.
Administer payment plan contracts.
Administer third-party contracts.

Understanding Payment Plans

This section lists common elements and provides an overview of payment plans.

Common Elements Used in This Chapter

Status

This field displays the current status of the contract.

Active: Select to make the contract available for use. This is the default value for this field until the student has been linked to the contract by posting. After the student has been linked to the contract, the other options become available.

Cancelled: Select to remove the student from the contract.

Hold: Select to prevent new transfers from the plan account, but to not discontinue its use completely.

Inactive: Select to discontinue use of the contract.

Not Posted: Indicates that a new or changed contract has not been posted.

Reference Number

Enter an optional reference number for each student on a particular contract. The reference number entry is for information purposes only, and does not appear on the student’s charges.

Payment Plans

Using Student Financials, you can create and maintain six different types of payment agreements for students with diverse financial needs or responsibilities:

Deferral contract
Payment plan
Third-party contract
Collection agreement

Deferral Contracts

Deferral contracts are designed for students who, for whatever reason, need to defer payment of charges for a short period of time. Essentially, deferral contracts extend the charge due date for eligible charges. You can link multiple students to one deferral contract definition, or you may prefer to create individual contracts to accommodate each student’s unique needs.

Payment Plans

Payment plans enable you 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 several choices for creating and processing student payment plans. The three types of payment plans are 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 defined in this section actually credit the eligible charges and move these charges to a payment plan account type.

The calculated payment plan enables you to use item type groups to define eligible charges. Also, the calculated payment plan has the ability to 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 may 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

Third-party contracts are credit agreements between your institution and a third-party sponsor—typically 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 a student’s account, and the student’s sponsor is sent a bill for the amount of the credit. This 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 fee up front and then seek reimbursement. If the sponsoring organization does not pay, the temporary credit is reversed and the student is liable for the payment.

Collection Agreement

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.

Linking Students to Deferral Contracts

When you link a student to deferral contracts, you specify certain parameters that are specific to the student you are linking.

Pages Used to Link Students to Deferral Contracts

Page Name	Object Name	Navigation	Usage
Defer Student	DEFER_STUDENT	Student Financials, Payment Plans, Assign Deferral Contract	Define student-specific details for a deferral contract.
Deferred Charges	ITEM_LINE_DEFER_SP	Click the Deferred Charges link on the page.	View all active charges in the student’s account and confirm that eligible charges have been deferred to the correct due date.
Defer Student Charges	DEFER_STDNT_LINE	Student Financials, Payment Plans, Assign Deferral Contract, Defer Student Charges	Confirm the deferral contract calculation results.

Defining Student-specific Details for a Deferral Contract

Access the Defer Student page.

Calculate

Click to calculate charges to be deferred. After calculating the contract, but before posting it, look at the Defer Student Charges page to confirm which charges the system selected for deferral.

Post

Click to defer charges.

Deferred Charges

After posting, click to confirm that the charges have been deferred to the correct dates.

Display Errors/Warnings

Click to see errors and warning messages.

Assessment Fee

The default amount in this field is the fee you specified during the setup of the deferral contract. Use this field to override the default amount.

Student Max (student maximum)

The default value for this field is the maximum amount you specified during the setup of the deferral contract. You can override this amount.

Waive Fee

Select to waive the student’s assessment fee.

Administering Payment Plan Contracts

This section discusses how to:

Confirm and modify payment plan contract parameters for an individual student.
Confirm and modify additional payment plan contract parameters for an individual student.
Recalculate payment plan contracts.

Pages Used to Administer Payment Plan Contracts

Page Name	Object Name	Navigation	Usage
Payment Plan 1	PAY_PLAN_SF_1	Student Financials, Payment Plans, Assign Payment Plan, Payment Plan 1	Confirm and modify payment plan contract parameters for an individual student.
Payment Plan 2	PAY_PLAN_SF	Student Financials, Payment Plans, Assign Payment Plan, Payment Plan 2	Confirm and modify additional payment plan contract parameters for an individual student.
Payment Distribution	TP_PPLN_QCK_POST	Student Financials, Payment Plans, Assign Payment Plan, Payment Distribution	Review the payment schedule, charge amounts, billing dates, and due dates for the payment plan. You can adjust the billing dates and installment amounts on this page.
Recalc Payment Plan (recalculate payment plan)	RUNCTL_PMTPLNRECAL	Student Financials, Payment Plans, Recalculate Payment Plan	Recalculate payment plan contracts.

Confirming and Modifying Payment Plan Contract Parameters for an Individual Student

Access the Payment Plan 1 page.

All of the values populating the fields on this page are default values from the contract setup pages. You can override values in any fields that are available, but cannot exceed the limits established when you set up the contract. Not all fields are available with all types of contracts.

Confirming and Modifying Additional Payment Plan Contract Parameters for an Individual Student

Access the Payment Plan 2 page.

First Bill Date, Payments and Adjustment Option

The values displayed in each of these fields are set by default from the payment plan contract setup. You can override these values.

Status

The value displayed in this field is set by default from the payment plan contract setup. You can override this value to make the student Active, Inactive, or Cancelled. Once you set the student status to Cancelled, you can later reactivate the payment plan contract for the student by changing the student status back to Active.

For calculated payment plan contracts, the system distributes the charges equally across all unbilled installments, regardless of the selected adjustment option, when you reactivate a calculated payment plan contract for a student. Subsequent adjustments to a reactivated plan follow the rules of the plan's adjustment option.

For both calculated and existing payment plan contracts, the system charges any designated assessment fee upon reactivation.

For existing payment plan contracts, the system allows additional charges for students with a status of Active if the associated contract has a status of Inactive.

Plan Type, Billing Cycle, Pay Plan Type, Account Type, Due after Days, Item Type and Pay Item Type

The values displayed in each of these fields are set by default from the payment plan contract setup. The values are for information only and cannot be changed.

Amount

On calculated and lump sum payment plans, the value displayed in this field is set by default from the Maximum Amount or Lump Sum Amount field on the Payment Plan 1 page respectively. For the existing type payment plans, the field displays the value of the selected charges after calculation.

Waive Fee

If an administrative fee had been initially defined in the payment plan setup you have the choice to waive the fee. Select this check box if you want to waive the fee for individual students.

Eligible Charges

When you add a student to an existing type payment plan, all eligible charges are displayed at the bottom of the page. Select one or more charges to include in the payment plan.

Calculate

Click to create the payment plan agreement. The payment plan agreement consists of all scheduled payments and plan fees. This button is unavailable if the student status is Inactive.

After you click this button, you can review and adjust billing dates and installment amounts on the Payment Distribution page.

Post

Click to post each of the scheduled payments and plan fees to the student's account.

Recalculating Payment Plan Contracts

Access the Recalc Payment Plan page.

Contract Number From and Contract Number To

Select contract numbers. You can recalculate one contract or a range of contracts. To calculate just one, enter the same number in both fields. To recalculate a range of contracts, enter the first and last contract numbers in the range.

You should recalculate payment plan contracts on a regular basis until the adjustment date has passed so that your payment plan balances are up-to-date and reflect adjustments to the student’s charges.

Note. This process only recalculates payment plans of the calculated type.

Administering Third-party Contracts

This section discusses how to:

Link students to third-party contracts.
Recalculate third-party contracts.

Page Used to Administer Third-Party Contracts

Page Name	Object Name	Navigation	Usage
Third Party Contract	TP_STUDENT	Student Financials, Payment Plans, Assign Third Party Contract	Link students to third-party contracts.
Recalc Third Party Contracts (recalculate third-party contracts)	RUNCTL_TPRECAL	Student Financials, Payment Plans, ReCalc Third Party Contracts	Recalculate third-party contracts.

Linking Students to Third-party Contracts

Access the Third Party Contract page.

ID

Enter the ID of the student you are linking to the third-party contract.

Student Max (student maximum)

The amount that automatically fills in this field is the amount you specified during the third-party contract setup. You can decrease the amount.

Priority

If a student is linked to more than one third-party contract, you may want the contracts to apply in a preferred order. Enter a priority value to determine the order in which the contracts apply. The default priority value is 999999. The lower the number, the higher the priority.

Course List

Confirm the default course list attached to the third-party contract or, override the selection with a different list. If you override the default selection, the list applies only to the individual student being linked to the contract. If the contract was not set up with the Specific Course List option, it cannot be added on this page.

Note. To use a course list with a third-party contract, there are particular setup issues related to term fees.

Post

Click to link the student to the third-party contract.

Find

Click to access the Explorer User Prompt. Use the Explorer User Prompt to enter a student’s ID to quickly locate their record in the third-party contract.

Corp Accounts (corporation accounts)

Click to access the Corp Accounts page, where you can review account details for the sponsor of this third-party contract.

Recalculating a Third-Party Contract

Access the Recalc Third Party Contracts page.

Contract Number From and Contract Number To

You can recalculate one contract or several contracts in a range. To recalculate only one contract, enter the contract number in the Contract Number From field. The same number populates the Contract Number To field by default. To recalculate a range of contracts, enter the first contract number of the range in the Contract Number From field and the last in the range in the Contract Number To field.

Until the end of the adjustment period for third-party contracts (last date, as established on the Third Party Contract setup page), you should periodically recalculate third-party contracts to make sure all adjustments to charges are recognized.

Calculate	Click to calculate charges to be deferred. After calculating the contract, but before posting it, look at the Defer Student Charges page to confirm which charges the system selected for deferral.
Post	Click to defer charges.
Deferred Charges	After posting, click to confirm that the charges have been deferred to the correct dates.
Display Errors/Warnings	Click to see errors and warning messages.
Assessment Fee	The default amount in this field is the fee you specified during the setup of the deferral contract. Use this field to override the default amount.
Student Max (student maximum)	The default value for this field is the maximum amount you specified during the setup of the deferral contract. You can override this amount.
Waive Fee	Select to waive the student’s assessment fee.

First Bill Date, Payments and Adjustment Option	The values displayed in each of these fields are set by default from the payment plan contract setup. You can override these values.
Status	The value displayed in this field is set by default from the payment plan contract setup. You can override this value to make the student Active, Inactive, or Cancelled. Once you set the student status to Cancelled, you can later reactivate the payment plan contract for the student by changing the student status back to Active. For calculated payment plan contracts, the system distributes the charges equally across all unbilled installments, regardless of the selected adjustment option, when you reactivate a calculated payment plan contract for a student. Subsequent adjustments to a reactivated plan follow the rules of the plan's adjustment option. For both calculated and existing payment plan contracts, the system charges any designated assessment fee upon reactivation. For existing payment plan contracts, the system allows additional charges for students with a status of Active if the associated contract has a status of Inactive.
Plan Type, Billing Cycle, Pay Plan Type, Account Type, Due after Days, Item Type and Pay Item Type	The values displayed in each of these fields are set by default from the payment plan contract setup. The values are for information only and cannot be changed.
Amount	On calculated and lump sum payment plans, the value displayed in this field is set by default from the Maximum Amount or Lump Sum Amount field on the Payment Plan 1 page respectively. For the existing type payment plans, the field displays the value of the selected charges after calculation.
Waive Fee	If an administrative fee had been initially defined in the payment plan setup you have the choice to waive the fee. Select this check box if you want to waive the fee for individual students.

ID	Enter the ID of the student you are linking to the third-party contract.
Student Max (student maximum)	The amount that automatically fills in this field is the amount you specified during the third-party contract setup. You can decrease the amount.
Priority	If a student is linked to more than one third-party contract, you may want the contracts to apply in a preferred order. Enter a priority value to determine the order in which the contracts apply. The default priority value is 999999. The lower the number, the higher the priority.
Course List	Confirm the default course list attached to the third-party contract or, override the selection with a different list. If you override the default selection, the list applies only to the individual student being linked to the contract. If the contract was not set up with the Specific Course List option, it cannot be added on this page. Note. To use a course list with a third-party contract, there are particular setup issues related to term fees.
Post	Click to link the student to the third-party contract.
Find	Click to access the Explorer User Prompt. Use the Explorer User Prompt to enter a student’s ID to quickly locate their record in the third-party contract.
Corp Accounts (corporation accounts)	Click to access the Corp Accounts page, where you can review account details for the sponsor of this third-party contract.