Higher education needs to market tuition in bite-sized payments

Key points:

• Promoting tuition installment plans is a strategic enrollment lever
• How to meet the needs of the “new majority learners” on campus
• Rebuilding trust, relevance, and results in higher ed
• For more news on enrollment and retention, visit eCN’s Campus Leadership hub

Let’s be honest–college tuition is expensive and overwhelming. For many families, stress doesn’t wait until move-in day. It hits the moment a student opens their acceptance letter and starts thinking about the cost or receives their tuition bill and sees the thousands of dollars due for the semester all at once.

But let’s be clear: It doesn’t have to be this way.

As the cost of higher education continues to climb, more institutions are offering flexible ways to pay their tuition bills with installment plans. These allow students and families to spread tuition payments out over several months, interest-free. But here’s the challenge: According to a 2023 survey by the National Association of Student Financial Aid Administrators, only 47 percent of students knew their school even offered an installment plan. That lack of awareness makes affordability an even greater barrier to student success. Just as institutions proudly promote academic excellence, they need to give the same attention to promoting tuition installment options, shifting the conversation from passive visibility to active promotion that puts these plans directly in front of students and families.

Why schools should be actively promoting installment plans

Families have come to expect flexible payment options because they are everywhere. In fact, 72 percent of students say ease of payment should be one of the ways colleges are rated on student experience.  From retail and travel to car payments and streaming subscriptions, breaking large expenses into manageable, predictable installments has become the norm. Tuition shouldn’t be an exception. Offering four to six interest-free tuition installments for each semester with transparent administrative fees gives families the breathing room they need to manage rising living costs. But too often, this option is underpromoted, mentioned briefly during enrollment, or buried in student portals rather than positioned as a key part of the student’s financial experience.

For institutions, it’s a missed opportunity. Promoting installment plans is a strategic enrollment lever to promote affordability to combine and complement traditional financial aid, especially for middle-income families who fall just outside traditional aid thresholds. Clear and early communication about payment flexibility can be the difference between a deposit or decline. By embedding messaging around installment options into admissions materials, orientation, and digital touchpoints, colleges can increase enrollment yield, boost retention, and strengthen their reputation for putting students first.

Proper promoting yields real results

There are reports that suggest when students and families are aware of and offered manageable payment plans, these plans help remove financial barriers that would otherwise prevent students from re-enrolling or graduating–benefiting both the student and the institution.

Unlike traditional aid models, which often leave “gap” students–those who fall just above scholarship cutoffs or encounter mid-semester emergencies–struggling, these installment plans can help bridge those gaps by spreading financial responsibility over time. Integrating these plans into the broader financial aid toolkit not only can improve outcomes but also signals a meaningful commitment to access, equity, and student success.

Operational benefits come with greater installment plan promotion

From the bursar’s perspective, predictable installment schedules make operations smoother and reduce volatility in revenue forecasting. Automated billing reminders and consolidated dashboards cut administrative overhead and manual work, freeing staff time to focus on student success.

When we partnered with a mid-sized private college to embed installment enrollment directly within its student information system, the college reduced manual reconciliation by 40 percent and redirected those resources toward outreach and student support. But these benefits will only scale when students actually know about and use the plans. This is why building awareness matters. The more visible the installment plans are, the more accessible they become, and the greater the payoff for students, families, and institutions

Marketing installment plans

To effectively launch an installment plan, start with how it’s marketed. Visibility is key to driving real adoption, and there needs to be a cross-functional (and promotional) approach that combines marketing, education, and well-planned delivery:

• Visibility: Promote plans early and often across admissions, orientation, academic advising, and digital touchpoints. Embedding it into student portals and online payment plans highlights its accessibility.
• Staff education: Train advisors and financial aid teams on plan terms, benefits, and eligibility. Equip them with comparison tools that highlight the savings versus traditional loans.
• Technology integration: Work with a payments provider to embed plan enrollment into student systems, automate reminders, and reduce manual workload.
• Performance tracking: Monitor key metrics such as adoption rates, on-time payments, retention, and financial impact. Then refine messaging and terms based on what is working.

A survey showed that four in 10 survey respondents say the sticker shock of higher ed is too high and 38 percent of respondents say the general public underestimates the actual price of college. With inflation rising and family savings continuing to lower, more schools are starting to realize that flexible tuition options, like installment plans, need to gain more awareness.

These plans aren’t new, but how schools talk about them is starting to change. Instead of treating payment flexibility as an afterthought, some colleges are weaving it into how they connect with prospective students. And it’s making a difference. Clear, upfront communication about installment options can help families stay on track and help schools keep students enrolled.

About the Author:

Laura Newell-McLaughlin is the CCO at Transact + CBORD.