4 minute read

Billing Practices to Support Non-Traditional Students

10/29/2024 9:00 AM

Higher education institutions are increasingly relying on non-traditional learners—students who may be older, balancing work or family commitments, or pursuing education part-time—as part of their student population. The National Center for Education Statistics (NCES) estimates that up to 74% of students have at least one characteristic of a non-traditional student.

However, non-traditional students often face unique challenges when it comes to paying for tuition costs, and many adult learners cite financial hardships among the top reasons for stopping out.

Some common challenges that non-traditional students may face include:

  1. Students who are paying for classes out of pocket or receiving tuition reimbursement from an employer often have a hard time with upfront payment demands.
  2. Returning and/or part-time students often qualify for less financial aid, such as grants and scholarships, than first-time and full-time students.
  3. Non-traditional students often take longer to complete degrees which can increase total educational costs.

Rigid and Confusing Billing Policies Cause Barriers

Non-traditional learners often face barriers that traditional students do not, such as juggling multiple responsibilities and managing their finances on tighter timelines. These learners need payment systems that are both intuitive and flexible, allowing them to focus on their education without the added stress of complex billing procedures. Research has shown that cumbersome billing practices can create significant roadblocks for these students, leading to frustration and, in some cases, decisions to leave the institution altogether. Structuring billing practices to be more flexible and transparent can greatly enhance retention efforts for this group.

For example, Fitchburg State University found that requiring students in certain programs to pay within 24 hours of registration caused many to be dropped from their classes for non-payment, leading to unnecessary re-registration processes and leaving students frustrated. Such rigid deadlines can disproportionately affect non-traditional learners who may need more time to secure funds or align payments with their pay schedules. Additionally, Fitchburg State’s research indicated that many students struggled with understanding why different courses had different billing processes, adding to their confusion.

Flexible Payment Options and Clear Communication Helps Students

Regardless of the exact make up of your student population, it is important to periodically reevaluate billing practices to best meet the needs of today’s various student types.

  1. Offer Payment Plans
    Flexibility is key for non-traditional students. Allowing students to pay installments over time rather than a single or few large lump sums can alleviate the financial pressure that often leads to stopping out. Whether a student is paying their own way or waiting on reimbursement, tuition installment plans or pay-as-you-go structures can accommodate a variety of financial situations. (Please note that offering payment plans may require additional compliance responsibilities.)
  2. Extend Payment Deadlines
    Rigid payment deadlines – such as payment required at time of enrollment – can be a deal-breaker for many non-traditional learners. By offering more lenient deadlines or implementing grace periods, institutions can help students avoid the punitive consequences of missing a deadline, such as late fees or course drops.
  3. Simplify the Payment Process
    Institutions should strive to make their billing systems as user-friendly as possible: provide clear instructions on how to make payments, reduce the number of steps required to complete transactions, and ensure that payment portals are easily accessible on both desktop and mobile devices. Simplifying and standardizing these processes can reduce the administrative burden on non-traditional learners.
  4. Transparent Billing Communication
    Clear, proactive communication is essential for non-traditional students who may not have the time or bandwidth to track down billing information. Ensure that students receive timely reminders of payment due dates and these communications clearly explain the consequences of missed payments. Including information about payment plan options and financial aid deadlines in these messages can also help students avoid unnecessary stress.

Supporting Non-Traditional Learners through Better Billing Practices

Billing practices may seem like a small administrative detail, but they can have a significant impact on the student experience—especially for non-traditional learners. By offering flexible payment options, extending deadlines, simplifying processes, and improving communication, colleges and universities can help reduce barriers to success for these students. In doing so, they will not only improve retention but also create a more inclusive and supportive educational environment.

Institutions can make meaningful strides in retaining their growing populations of non-traditional students and supporting student success by taking the time to evaluate and improve their billing practices.

Interested in sharing your experiences on this topic? Complete this survey from Fitchburg State University about Student Billing Practices That Impact Retention.

To learn more about the research from Fitchburg State University, watch our on-demand webinar, Are your billing practices impacting student retention?