Deferred payment plans can be set up for students who need to pay their balance in increments. You can set up the plan to be restricted to only certain charges and if desired certain date range of transactions and determine the amount of dates and if the plan is for a non-returning or current student.
- In Configuration page, click Deferred Payment Plans.
- Click New Deferred Payment Plan from the action bar
- In the Plan Name field, select a deferred payment plan. You can create deferred payment plan entries on the Tables page of Configuration or enter a new deferred payment plan in the field.
- If you later decide that you do not need this payment plan, you can mark Inactive? rather than deleting it. Inactive plans are excluded as an option on the Add Deferred Payment Plan screen accessed from the student record. You cannot delete a payment plan from Configuration once it is in use on a student record. Students remain on the payment plan if they were assigned to the plan before it was made inactive.
- In the Plan type field, select “Current student plan” or “Non-returning student plan”.
- Select “Non-returning student plan” to create a payment plan for students who are leaving school with an outstanding balance; for example, seniors with a remaining balance or students transferring to another school.
- Select “Current student plan” to create a payment plan for students who are paying for the current semester’s charges.
- In the Description field, enter a description for the payment plan.
- In the Restriction to use field, select an application restriction or <No Restriction>. Application restrictions determine which charges and line items are included in the calculations for the payment plan. Only application restrictions whose date range is a billing cycle or Restriction can be used on any date appear in the field. You cannot change the value in the Restriction to use field once the payment plan is in use on a student record. If you select <No Restriction>, all charges and line items are included in calculations for the payment plan regardless of whether the charges and line items are included in other payment plans or not. Schools will likely create one payment plan for each payment schedule for any given semester and one for non-returning students.
When creating a Current student plan, select an application restriction that ensures only charges and line items for the current semester are included. If you plan to include the setup fee charge in the total for the payment plan, make sure that the application restriction you select includes the billing item used for the setup fee. When creating a payment plan for non-returning students, select <No Restriction> to ensure the student’s entire balance is included. Also, select <All dates> in the using dates field to ensure all the charges are included.
- If you selected an application restriction with an assigned billing cycle, the using dates field is disabled and displays the billing cycle. If you selected an application restriction with Restriction can be used on any date selected in the Dates field, you can select <All Dates> or a billing cycle. This date setting determines which transactions to include in calculations based on the transaction date for charges and line items. If you selected a name in the Plan name field that is already being used for other payment plans, you must select a date that does not overlap a payment plan with the same name already in use. No matter which recalculation option you select, the scheduled dates for payments do not change after recalculating.
- Mark the Recalculate the [ ] when transactions included are changed checkbox to select how to recalculate scheduled payments when the transactions included in a payment plan are changed or removed, or a new charge is added to the plan. In the field, select Entire payment plan, Remaining scheduled payments, or Last payment scheduled.
- The Recalculate the [ ] when transactions included are changed field is disabled after the plan is in use on student records.
Entire payment plan When you select this option, the program recalculates all scheduled payments including the setup charge (unless the setup fee is set to Percentage of amount needed for payment plan in that case, it is excluded). If you recalculate after a student made scheduled payments for the payment plan, the previous payment amounts are redistributed to the scheduled payments starting with the oldest scheduled payments first. In other words, the program unapplies all the scheduled payment dates and reapplies the payments to the oldest scheduled payment date. This does not mean that the payments are also unapplied from charges when redistributing to the scheduled payments — payment applications to charges remain regardless of what happens with the payment plan. It is important to note that scheduled payments that were considered fully paid may no longer be considered fully paid after recalculating. For payments that were previously considered fully paid, the due date is now set to the current date.
Remaining scheduled payments When you select this option, recalculating adjusts the amounts of only scheduled payments that are not fully paid. If you recalculate after a student made scheduled payments for the payment plan, the new remaining balance is redistributed to the oldest scheduled payment dates. This does not mean that the payments are also unapplied from charges when redistributing to the scheduled payments — payment applications to charges remain regardless of what happens with the payment plan. It is important to note that scheduled payments that were not considered fully paid may now be considered fully paid after recalculating. If all scheduled payments are considered fully paid after recalculating, the remaining balance is added to the last scheduled payment date.
Last payment scheduled If the change to the plan is an increase in a charge’s amount, when you select this option, the program recalculates the payments using the same process as the “Remaining scheduled payments” option. If the change to the plan is a decrease in a charge’s amount, recalculating decreases the payment amounts starting with the last payment first. If the amount to reduce by is more than the last payment, the program reduces the next to last payment and so on until the entire amount is used.
- Mark the Reduce balances by ungenerated financial aid [ ] checkbox to reduce the balance calculated for the payment plan with ungenerated financial aid. In the field, select Using the entire balance or Starting with the first payment.
Using the entire balanceWhen you select this option, the program calculates the balance of a student’s payment plan and then reduces the overall balance with ungenerated financial aid credits. The program applies the percentages defined by the payment plan to the new overall balance to determine the amount due for each date.
Starting with the first paymentWhen you select this option, the program calculates the student’s payment plan balance and applies the percentages defined by the payment plan to the balance to determine the amount due for each date. Then the program applies the ungenerated financial aid credits to the first scheduled payment amounts.
- If you selected Current student plan in the Plan type field, you can make selections on the Schedule Dates tab.
- In the Number of dates field, enter the number of payment dates to use for the payment plan. Add the first row to the Schedule Dates grid for down payments made at registration.
- In the Name column, enter a name for each payment due in the schedule. For example, 1st payment, 2nd payment, and 3rd payment.
- To manually create a schedule, in the Date column, enter the payment due dates and in the Percent column, enter the percentage of the total balance due for that payment. If all payments are the same percentage, you can click Distribute Evenly. Or, to load a schedule from Configuration or quickly create one using the wizard, click Create Schedule. The Create Schedule screen appears. When using the wizard, you can use the Frequency field to quickly set up payments that are due monthly.
- The Remaining field displays 100% minus the total percentage currently distributed across rows in the grid.
- Select the Setup Fee tab.
- Mark Add setup fee when adding a deferred payment plan to add a setup charge to the student record for using a deferred payment plan.
- In the Transaction date field, select the transaction date to use on the charge. Select Plan date added to use the date the payment plan was added or select Specific date to enter a specific date in the field.
- In the Due date field, select the due date to use on the charge. Select Default due date to use the default value when the charge is created or Specific date to enter a specific date in the field.
- In the Item/Description field, select the flat rate billing item to use when creating the charge. Make sure to select a billing item with a date range that will be valid on the setup charge’s transaction date.
- In the Post status field, select the default post status for the setup charge.
- In the Post date field, select the post date for the setup charge.
- In the Comment field, enter default comments for the setup charge.
- In the Base charge amount on [ ] field, select Amount on the billing item or Percentage of amount needed for payment plan.
Select Amount on the billing item to use the amount on the selected billing item to determine the amount of the setup charge.
Select Percentage of amount needed for payment plan to calculate the setup charge using a percentage of the total amount of the payment plan. In the using [ ] % field, enter the percentage.
- Click OK to save the payment plan and return to the Deferred Payment Plans page.
For more information, refer to The Configuration guide for Student Billing