University of Virginia

It’s Tuition Bill Time

Tuition bills for the upcoming fall semester are coming in now. If you haven’t seen one in the mail, check online through your student’s online ID, since larger schools often send bills electronically. Many schools offer different payment options, including electronic funds transfer from a checking account, credit card payment, and good old fashioned checks. Credit cards are not always the best option however, since there are often large service fees charged by the college’s credit card processor.

Writing a check is often the best option. It makes sense to limit giving out your bank account information, and a written check will provide easy documentation for tax considerations.

Many colleges offer payment plans. Payments can be spread out over a number of months and any charges to set up such a plan are relatively small. You may have to agree to electronic payment to use such a plan, but that might be worth the risk.

If you plan on using money in a 529 plan, you usually have three options. The withdrawal can be paid to the college, to the beneficiary, or to the account owner. You will want to choose the option that is easiest for you and best fits your needs. Generally speaking, payments directly to the college are least advisable since you lose control over the entire process. Remember to allow sufficient time for the withdrawal to be processed by the 529 plan.

If you have specific questions about your situation, please drop us a note and we’ll be glad to help.