Over the past decade, University spending became more transparent than ever. A notable cost was the expensive point of sale systems colleges use to process tuition checks.
The standard model for college payments requires multiple intermediaries. Payments travel from the student to the institution through one to three fee collecting parties until the payment can even be charged back to the student. As a result, colleges have had to face a question regarding the true value breakdown of their tuition.
Transactional fees account for a sizable portion of school related payments. In order to reduce tuition, colleges plan on integrating new payment models that directly connect with banks while cutting out the middleman.
These new integrations would lessen the burden of students across the nation that are left with quarter million dollar debts when they graduate. Fortunately, this suggested transition is favored by all parties involved. In a study taken, 46% percent of higher education financial directors voiced interest in connecting with banks directly. Furthermore, 85% of banks involved with tuition payments are also motivated to cut out the middleman, as it simplifies their end of the process.
The bottom line is that students deserve more transparency and convenience in their payment methods. Tuition is a burden that thousands of students undertake in hopes of a promising future. These small changes to the tuition payment process brings promise to the future of financing education.
Administrators have the opportunity to add value to their institutions while making the concept of “affordable education” a reality for scholars around the country.