Please note that this transcript was auto-generated. We apologize for any minor errors in spelling or grammar.

[00:00:00] Hi folks, Jonathan here from MEFA. When I talk to parents or students about how they can pay for college, I always ask if they’ve heard of a monthly payment plan, and it’s surprising how often the answer is no. Monthly payment plans are a great way to pay what you can out of pocket from your current salary towards your college bill, and most colleges offer them, here’s how payment plans work.

Colleges partner with a third party provider to offer these plans to you. A small fee may be charged when you sign up, but there’s no interest owed. The term will likely be for 10 to 12 months if you’re paying for an entire year or five to six months. If your plan only lasts for a semester and once you’re signed up for a monthly payment plan, you can set your payment amount for whatever you can afford.

Now, I don’t know many if anyone who can pay the full balance due for a year from what they earn. But it is worth it to pay what you can out of pocket because every dollar you [00:01:00] pay in a monthly payment plan is a dollar you won’t have to borrow and pay interest on for the next 10 to 15 years. Talk to your college financial aid office for more information on signing up for an interest-free monthly payment plan.

And for more information on paying for college, here’s where you can reach us.