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Installment Payment Plan - Undergraduate Students

Installment Payment Plan - Undergraduate Students

The Installment Payment Plan (IPP) is a retail installment contract which allows families of our undergraduates to finance the estimated total net annual charges (total annual charges less authorized aid, memo items, and scholarships) in 12 or 6 monthly payments.

Eligibility

Any parent or guardian of an active Brown undergraduate is eligible for this plan.
Exception: Study Abroad Students - parents of students who are enrolled in non-Brown-sponsored study abroad programs are not eligible to participate in the IPP program during the term(s) the students are studying away. Parents with prior year outstanding student account balances are not eligible to participate.

Application Fee

A non-refundable $36.00 fee is charged for each application. This fee must be paid with a separate check and remitted with the IPP application. The application will not be processed until the fee is paid.

Application Deadline

Annual or Term I only: Parents/guardians are urged to apply by May 18. Applications are not accepted after August 1. Term II only: Parents/guardians are urged to apply by November 1. Term II applications are not accepted after January 1.

Amount to Finance

This amount may not exceed the estimated total net annual charges (total estimated annual charges less authorized aid, memo items and scholarships). Authorized aid or memo items may not be financed.

Automatic Debit

Your monthly installment payment may be made through an automatic debit to your checking account (ACH). See Authorization Agreement for Pre-authorized Payments (ACH Debits).

Balloon Payments

A balloon payment is any amount you wish to pay directly to the student's university account to reduce the amount financed through the Installment Payment Plan. (Do not include authorized aid or memo items such as loans and scholarships as a balloon payment.) Balloon payments must be paid in full by August 1, or in equal parts by August 1 and January 1.

Finance Charge

The finance charge is pre-calculated and based on an annual percentage rate of 7.50% amortization on the amount financed, commencing on August 1. Finance charges for Term I accrue from August 1 to November 1 and accrue from January 1 to May 1 for Term II.

Late Payment Charges

A late charge of $10.00 is charged on any monthly payment in default for a period of 10 days or more.

Schedule of Payments

All payments are due the first day of each month until the entire unpaid finance charge and principal of the IPP contract are paid. Annual: 12 monthly payments June 1 - May 1. Term I only: 6 monthly payments June 1 - November 1. Term II only: 6 monthly payments December 1 - May 1.

IPP Disbursement

A credit to the student's university account will be made when Brown receives the signed payment plan application, application fee, and any installment payments currently due. Brown will disburse one half of the installment plan as an memo item each term. Scheduled disbursement dates are August 1 and January 1. Actual principal paid will be applied to the student account at the end of the program.

Retail Installment Contract

The parent/guardian will be required to complete and sign the payment plan application providing for the educational services involved. The first two payments - June 1 and July 1, will apply to principal only. Finance charges are assessed beginning August 1. The next four payments - August 1 through November 1, will apply first to finance charges and then to principal. The December 1 payment will apply to principal only. The next five payments - January 1 through May 1, will apply first to finance charges and then to principal until all IPP obligations evidenced by the contract have been repaid. Late fees will be assessed prior to the application of finance charges or principal for any late payment.

Increases/Decreases in Amount Financed

Changes (rebudgets of amount financed) in the payment plan, resulting from the selection of different options by the student or otherwise will be handled as follows:

Changes - no more than one (1) change per term is permitted.

Increases - additional charges on the student's university account not covered by the payment plan are payable upon demand.

Decreases - credit balances up to $200 on the student's university account may be refunded in cash to the parent or the student; credit balances in excess of $200 on the student's university account will require a reduction (rebudget) of the amount financed.

Prepayment

Additional payments over the basic schedule may be made at any time without penalty for prepayment. Any prepayment will be applied toward the final scheduled payment.

Payment

Participants will be billed for the amount due on a monthly basis. The statement of account includes a payment remittance form to ensure proper credit of the payment submitted.

Default

If any payment is overdue by 15 days or more, Brown shall have the right to cancel the entire payment plan. Any payment due on the student's account as a result of this action is immediately due and payable. The acceptance of partial payments shall not be considered a waiver of any such default. If necessary to cancel the plan, only the principal installment payments received to date are transferred to the student's account.