Here are some commonly asked student questions that get the most from the financed accounts we manage for you. These questions would take place as a part of your admissions/financial aid discussion. They’re good transition points for going into the particulars of your payment options as well.
Before this, you should make sure you have matched the needs, goals, and values of the student to the features and benefits of your school to showcase the match between the two. This will help cement the value of your education and the associated cost.
From there, helpful financing information includes:
- Relating to the student that education is an investment and a privilege – not a right. Grants are not always available – and the number one way students pay for education is via loans or financing. Loans and financing are investment tools that help them manage the cost over time to accomplish their goals and attain a career that will offer them greater earning power over time – not to mention the increased job satisfaction etc . . . Education is an investment into themselves.
- Career education has a far greater return on investment than traditional university-based learning (true!). It also provides skills that relate to the real world versus theory.
- Tell them that if they are willing to invest in themselves and commit to this and make some sacrifices, before they leave today you’ll be able find a financing plan for them; but education is not free and the MUST be willing to make a commitment and have the means to keep it. Repeat this as needed.
Questions to Ask:
- Do you understand that education is an investment in you to acquire a career offering job satisfaction and a solid earning outlook?
- Do you understand that career education involves loans and financing and are you willing to invest in yourself through these options?
- What kind of savings do you have to help manage the investment in your education?
- What kinds of support can you expect from your support network of family and friends? You can preface this by asking how family and friends feel about their career choice.
- Are their parents/family/husband/wife/boyfriend/girlfriend willing to help pay for school? Cosign?
- Ask if they know what credit is? Do they know that loans can be based on credit? If they don’t know, explain it to them in simple terms.
- What is their monthly budget?
- Are they willing to alter their monthly budget to manage the investment in school?
- What costs could they decrease if needed to help pay for school more quickly and avoid higher interest rates?
- Do they understand that paying tuition off more quickly costs less over time than lower monthly payments?
- Do they understand that payment plans can save them significantly in interest costs over long-term student loans (if available or applicable)?
- Do they understand the credit ramifications of failing to pay and the impact it can have on their future? Ability to get a car, house, even cell phone?
At that point review your shorter, lower interest payment options first – then go with the higher interest, longer options. Don’t let them go for lower payments first – your cash flow will suffer and shorter plans perform better.
People buy monthly payments – so financing is a good ‘sales tool’ – but you’ll want to control what you offer unless you are financing more flexibly to fill an empty chair. Ascertain the student’s budget, nudge it, affirm it, confirm it, reaffirm it – and then make sure they understand the terms.
Finally, close by showing them some graduate earning statistics, occupational outlook data (if applicable), earning potential, a list of graduate employers, and a recap of how your school can help them achieve the many goals they mentioned in the beginning and how being financed with TFC is helping to make that happen. If they view the cost as something positive, the account will perform better.
Get co-signers, run credit checks, automate their payments, and complete our credit application form as needed or advised by TFC. All of these features can improve account performance immensely.
Lastly, have your chat with a smile! Remember that nerves can run high in the financing process. Let them know you care and you’re there to help always, as is TFC! Happy financing!
