However, a new report by the Consumer Financial Protection Bureau warns of a number of risks associated with these payment plans, including snowballing charges and aggressive collection practices.
Nearly 4 million students use payment plansNearly all colleges offer some sort of tuition payment plan, the CFPB found.
Under the plans, tuition and other education expenses are typically spread out into several payments over a semester or academic year.
Most college payment plans are interest-free, but there can be enrollment fees and other charges involved, the CFPB found.
"If the family misses a payment, some tuition payment plans may be converted into private student loans with unfavorable terms," he said.
Persons:
Rohit Chopra, they're, Elaine Rubin, Rubin, Mark Kantrowitz, delinquencies
Organizations:
Istock, Consumer Financial, Finance, Money, Homeowners
Locations:
Edvisors