<p>I have a question for those who are more mathematically inclined than I. I just received a flyer from afford.com which is the monthly billing service that UVA uses should one choose to pay school expenses monthly, rather than in two lump sums. The plan requires 10 monthly installments and indicates that, in addition to a modest enrollment fee, it is interest free. Here is the question. Under the plan, UVA mandates when each monthly payment must be made with the first payment to be made today and the last of the ten monthly payments due before the end of the school year. Well, assuming I opt for the plan, rather than pay each semester in full, why should I want to pay on June 1 (even though only 1/10 of the yearly cost), if the actual first payment to UVA, if paid in full for the semester, is likely not due until mid July or August? Again, I am not a math wiz but it seems to me that the float on the money from June 1 to August is equivalent to charging interest. Any thoughts?</p>
<p>if they don’t ask for the money starting a few months earlier, then you will not have finished paying the semester off by the end of the semester. UVa needs to spend the tuition money throughout the semester. Whats the use of getting tuition money on december 1st, if the fall semester is over in a week?</p>
<p>Good point. Hadn’t thought of that. Nevertheless, I now find out that the first semester payment is due (in full) in mid August. aside from the point you correctly raised, what do you think the float is worth on 3 payments (out of state) for June 1, July 1 and August 1. Each payment will be about $3,600. Although this is more of an exercise in curiosity for me rather than necessity, it still bugs me that someone claims something is interest free when it appears to me, at least, that it is not.</p>
<p>well its interest free from their standpoint. they arn’t asking you for an x% increase in the tuition for allowing you to pay it over time. whatever interest you’re giving up because you’re paying them early isn’t really their problem is it?</p>
<p>Well John, you may have started this thread out of curiosity, but in doing so you provided a huge wakeup call for me. Seeing monthly payments of $3600 – essentially a mortgage – in writing felt like a bucket of ice water. I really hope my kids stay in state. Do ppl make instate payments on a monthly basis to afford.com or is that just for those jumbo oos payments?
Thanks!</p>
<p>I believe afford.com is available to everyone.</p>
<p>Also, again out of curiosity, is anyone aware of whether there is a pre-payment option which is advantageous byfor paying for four years now, or alternatively, is there a way to lock in the tution etc by paying four years up front.I seem to recall seeing something about this but I was not sure whether it was only for in-state folks.</p>
<p>I have not seen a offer for oos prepayment. I think you are referring to the instate options. Here in Virginia they have what is called VTAP. Virginia Tuition Assistance Program. I purchased this years ago for my children. For example, I paid 15,000 for a then five year old to attend any four year Virginia State University. This provides four years of instate tuition and fees. Room and board is separate. Naturally this does not assure acceptance to any school, but if your kid(s) attend you just have the r/b payment. If your child opts to attend a private or oos school you can roll this money, (which is the current average cost of an instate school tuition) over to a 529 and then use the funds as cash anywhere. It was an okay deal so I did it for both of my children. Essentially the money doubled in 10 years. The cost is significantly higher today, but with the cost of education, it is still a decent deal.</p>