10 Ways to Avoid Students Defaulting on Payment Plans (Student Expectations & Commitment)

TFC Tuition Financing’s Sean Steinmarc knows how difficult it is for schools to maintain good finance practices with their students, and with years of experience has developed his 10 best ways for avoiding default on student loans. Part one of this five-part series focuses on setting the expectations of your students and ensuring that your students are committed to your school and the outcome of their education.

#1 Set student expectations

It is important to set the tone for what is expected of your students right away when they first enroll.

Make sure to set expectations regarding not only what they will experience with their education but also what is expected of them with their payment plan. Students often review a great deal of paperwork when they enroll, and there is a reasonable chance that they might sign forms after a cursory skim without fully taking the time to comprehend every detail. Of course, your staff will review everything in detail to make sure the student understands; however, there is a definite advantage to going back through a second time and making sure that students understand explicitly that they are responsible for their tuition payments.

Don’t forget to stress the date that payments start – oftentimes we hear from students that they thought payments didn’t start until after graduation. In these cases, it is apparent to us that they were confused about the difference between their payment plan and their Title IV loan.

If students have multiple loans, make sure that they understand each separate responsibility, including the dates and amounts of payments due.

TFC helps with setting student expectations through use of our online portal, making it easy for students to check dates for payments due, and maintain a healthy relationship with you and your school.

#2 Ensure the student is committed to your school and their education

We always recommend getting some form of down payment from students before their payment plans begin.

If they are unable to offer a down payment that is at least equal to the amount of their monthly payment, then there is a little chance that they will be able to afford their payments the following month. This also starts the students with a financial commitment right away, which reinforces the psychology of their commitment to paying their payment plans. As well as to your school.

TFC Tuition Financing works with schools as an alternative to Government loans, and helps those students who might not have credit available to them. We work with your school to improve communication between you and your students so they are committed to your school, repaying their loans, and understand every step of the way.

In part two, TFC discusses the benefits of finding the right students for your courses and the advantages of co-buyers in education financing.


To make payments or to inquire about your account, please call 1 (800) 872-9832, or visit TFCStudentinfo.com

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