CU-Boulder offering new interest-free payment plans for college costs

As student loan debt and tuition rates continue to rise, the University of Colorado is offering new payment plan options to help students and families spread out the cost of attendance.

CU has long allowed students to make two payments a semester during the spring and fall, but only recently began piloting plans with four and five payments a semester. It’s also adding a summer payment plan.

About 1,000 students have been testing out the new interest-free plans this spring, according to CU officials.

“We’ve received feedback over the years from some families that options with more payments would be great,” said Susie Jacobs, communications manager for the CU Bursar’s Office. “It’s difficult to come up with that one or even two lump-sum payments, so this allows them to sort of manage their cash flow a little more easily.”

For an in-state undergraduate in the College of Arts and Sciences, CU estimates the total cost of attendance to be $25,581 this year, which includes tuition and fees, on-campus room and board, books and supplies. That estimation is higher for students in business, engineering, journalism and music.

For out-of-state undergraduates in arts and sciences, the estimated cost of attendance this year is $53,231.

Even split into two semesters, that’s a lot of money for students to pay at one time. That may be prompting students to borrow money.

Student loan debt now totals $1.16 trillion in the United States, according to the Federal Reserve Bank of New York’s latest borrowing snapshot.

Though they can’t say for sure that more payments will reduce borrowing among students in Boulder, CU officials are hopeful it will help.

“This could change the game for some people in terms of student debt,” Jacobs said.

The plans, administered by NelNet Business Solutions, are user-friendly and allow students to authorize up to five people to make payments on their account.

“It’s easy to sign up online; it’s easy to tell what your payments are going to be,” Jacobs said. “And if there are any changes to the student account, it’s easy to rebalance the payment plan so it readjusts all of the payments.”

For the upcoming fall semester, students can choose between making four or five payments to the Bursar’s Office for a $25 fee. They can also choose to make 11 or 12 payments for the entire academic year for a $45 fee.

Students enrolled in classes this summer can make two or three payments for $25.

Spencer Hagerman, a CU sophomore from Hawaii, said she was supportive of the payment plan options because right now, her parents pay the entire bill at the beginning of each semester.

She said the plans don’t address how expensive college is, though.

“I’m an out-of-stater, so it’s ridiculous how much I have to pay just to come here, not to mention traveling fees as well,” she said. “It’s really bad, especially when you have to pay ridiculous amounts for textbooks. So all of it is too much. It’s always too much.”

Noah Williams, a second-year graduate student in mathematics, also bemoaned the high cost of higher education. But, he said, the payment plans make sense.

“On the surface, it seems like this would offer students more flexibility,” Williams said. “It seems like a lot of things that happen in our lives are spaced out — home payments, credit card payments.”

Freshman Elva Fako said she thought the new plans might make tuition more manageable and reduce students’ borrowing.

“If you can pay five times instead of once or twice, I think that’s more convenient for everyone, Fako said.

Sarah Kuta: 303-473-1106, kutas@dailycamera.com or twitter.com/sarahkuta