University loan application problems, payment frictions
The Smart Receivables Playbook: Rethinking Tuition Payments in an Era of Transformation, a PYMNTS and Flywire collaboration, opens with a fact as important as it sounds: âA massive shift towards digital education technologies and platforms has occurred over the past year, with online and asynchronous learning. in many ways supplanting – not just complementing – traditional classroom and campus experiences. “
Read more: The Smart Receivables Playbook: Rethinking Tuition Payments in an Era of Transformation
Based in part on a complementary study by senior executives in education, finance, healthcare and tech, new data shows how education is tested when it comes to payments.
While enrollment has held steady and even increased for private four-year colleges and graduate schools (an almost 5% increase in enrollment for the latter), the Playbook notes that “the pandemic has caused considerable financial strain. in community colleges and two-year schools and dramatically reduced international student enrollment amid pandemic border restrictions. Enrollment among college-aged students fell more than 13% at community colleges, while foreign enrollments fell about 18% in 2020 compared to 2019.
Frictions over tuition payment and old-fashioned enrollment and enrollment are not helping the pressures of the pandemic era, as the Playbook states that “nearly half of college leaders and of two-year community colleges (48%) see the paperwork associated with student loan programs as a major pain point, as do 36 percent of four-year colleges and universities. A quarter of community and two-year colleges also cite regulatory requirements for government payments as an issue, as do 19% of four-year colleges and universities. “
The friction of cross-border payments puts downward pressure on international students who enroll and pay their tuition fees, compounding the problems for institutions that, in many cases, are heavily dependent on students from other countries who choose to study in the United States.
According to the Playbook, âAbout 80% of financial officials at two- and four-year institutions say it is difficult to receive payments from international student loan programs, and half say the same about payments from foreign governments. About a third of the rest said that “receiving payments directly from students and families is also a challenge. “
The new research suggests administrators are going back to school to learn about improved payments and related issues. âOur data further shows that most finance officials in the education sector are less than happy with their payment transactions, even with the huge amounts spent in this area: states.
See also: The Guide to Smart Debt: Rethinking Tuition Payments in an Era of Transformation