School Fees Management Plan

By Sandy Naidu | January 18, 2009

If you pay more than $1000 towards school fees for one or more of your children then there is a company called ‘School Plan’ which can greatly reduce the strain on your family budget. Private Schools charge fees once a term or once a semester. If the fees were charged every month rather than every term or semester then it will greatly reduce the strain on the budget for the families. But unfortunately private schools do not do that. This is where ‘School Plan’ comes in handy.

This is how the system works - You pay ‘School Plan’ an installment amount every month. School Plan, pays the school fees to the school when they are due. For this service they charge you a service fee. The service fee depends on the total amount of fees to be paid (for all your children together).

This plan is beneficial if you are finding it hard to pay a lump sum to the school every 6 months or 4 months. If you find the cash outflow very hard to manage during these periods then this could be the right plan for you.

On the other side of the coin, this plan is not inexpensive. If you are disciplined, you could design a similar plan (but with no service fee). Just pay a monthly amount into your mortgage (a mortgage that has a redraw facility). When it is time to pay the fees, redraw the fee amount from your mortgage.

I don’t want to discourage you from this School Plan though. It is a good plan and something that can ease a lot of mental and financial strain from your budgets. School Plan also offers a premium plan called ‘School Plan Plus’. The school Plan Plus has an insurance facility - if the major income provider of your family is involved in an accident that causes death or permanent disability, then this plan will pay the school fees for your child for the remainder of the school year.