Page 30 - AAA Magazine – AAA Ohio Auto Club – January 2021

Tuition Payment Plans Can Make Budgeting for College Easier
Preparing for college can be a stressful time for families. Budgeting alone can take up a lot of time and energy. Tuition payment plans can help reduce some
of that stress by offering the option to pay for college in installments rather than one large sum of money. Many public and private schools offer these plans, which provide a helpful alternative to student loans. Tuition payment plans are popular with middle- and high-income families at higher-cost colleges. They’re also beneficial for families of all income levels when it comes to better managing college budgets. If you’re wondering whether or not a tuition payment plan is right for your college student, here are some essential things to consider.
THE PROS
Tuition payment plans spread out college fees into installments that can be either monthly or on a semester basis. Plans vary but last up to one year for most schools. Some schools offer multiple payment plans, allowing families to work out payments that fit with their budgets. The amount paid varies depending on what a student owes for tuition and factors in financial aid, grants and work-study funds. Tuition payment plans don’t charge interest like student loans and charge minimal start-up fees. They also don’t typically require a credit check, meaning approval could be easier than it would be
with student loans. Most tuition payment plans allow amilies to set up automatic transfers from their bank
accounts for payment installations, making the process as seamless as possible.
THE CONS
Like all things, tuition payment plans can come with some downsides as well. Some colleges use payment management companies and those companies can charge a fee to enroll in a plan. They also may charge
a fee for missed payments. Those fees will likely vary from company to company and school to school. Tuition payment plans don’t cover the cost of things like books, supplies and personal expenses. Housing and food costs may not be covered depending on the school. This means you could still be left with thousands of dollars’ worth of fees to cover. Some schools don’t offer tuition payment plans at all, so it’s imperative you talk with the financial aid office about options.
Overall, tuition payment plans can be a great alternative or supplement to student loans. They can be less expensive than many federal and private student loans
or other long-term debts. At the very least, they can save you money in interest charges if you’re able to make the payment amounts as scheduled. If you’re wondering about tuition payment plans for your child, talk to the financial aid office at their potential school. The advisors can offer you all the information you need to make an educated decision about your child’s college costs.
Common Winter Home Insurance Claims
Continued from page 27
policies will cover damage from wind and hail, but it’s smart to be aware of any exclusions that may apply. If you live in an area prone to these types of damages, you may be less protected. Other exclusions include not being covered if outside surfaces and windows are affected in appearance but not in function. Don’t forget about your car insurance, either. Make sure you have comprehensive coverage that will cover the cost of hail or wind-related damages.
In addition to being well-educated about your insurance policy, there are some preventative measures that you can take*. While you can’t prevent wind and hail, you can certainly prepare for them.
• Inspect your roof and repair/replace missing shingles. • Consider hail-resistant asphalt shingles with a Class
Four rating from Underwriters Laboratory if you live
in a hail-prone area.
• Remove anything on your property that isn’t nailed
down and could be moved by heavy winds.
• Inspect your home for loose gutters, shutters or
shingles and secure them.
• Trim trees and remove dead branches that could fall
or fly when heavy winds occur.
For more information on home insurance coverage, or
for your free quote, visit AAA.com/Insurance.
*Remember to discuss property updates/upgrades with your agent to ensure your investment is covered.
28 | AAA MAGAZINE
Emily Derr is a Marketing Manager for AAA Ohio.