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: “A massive shift towards digital education technologies and platforms has occurred over the past year, with online and asynchronous learning coming to fruition. regards supplanting – and not just complementing – traditional experiences in the classroom and on campus. “
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 technology, 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 border restrictions linked to a pandemic. 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 community colleges (48%) see the paperwork associated with student loan programs as a major problem, as do 36 percent of those at 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, “About 80% of financial officials at two- and four-year institutions say it is difficult to receive payments from foreign 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. “Our data further shows that most education finance officials are less than satisfied with their payment transactions, even with the considerable sums spent in this area: 72% of them consider their operations to be payment are little or little effective, “says the Playbook. States.
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