Target Program
Tuition Contract Purchase Program
94% is Paid to School in 3 Disbursements
- 1st Disbursement UPFRONT 65% down to 45%
- Paid after Borrower makes 1st monthly payment
- Funds Released on the 29th of the month
- 2nd Disbursement PAID MONTHLY AVERAGE of 10% up to 30%
- Paid Monthly over the contracted term
- Funds Released on the 29th of each month
- 3rd Disbursement END OF TERM 25%
- Paid after the last borrower payment is received
- Funds Released on the 29th of the month
Benefits for School's Students
- 12% APR is for everyone!
- 0.66% – 9.76% Payment Interest Rate depending upon Term Length
- EASY 400+ FICO APPROVAL
- 5% Finance Fee – after Student Approval with E-Sign Documents
- School may increase the FICO threshold
- Multiple Loans for Degree Students
6% Discount Fee is Built into Student Monthly Payments
In the event of Default within 12 months, 6% Fee will be Prorated
Default Loan Contracts
- School is never required to pay borrower interest.
- School is never required to pay the entire amount of the original tuition contract.
- School takes contract in-house, or commissions collection servicer, and returns excess disbursements over principal’s received ending balance plus any associated fee.
Servicer’s Credit Bureaus Reporting & Collection Leverage
We utilize one of the top three Servicers in the country. Schools are unable to report to the credit bureaus on self-funding loans. Our Tuition Loan Contracts are reported as a Credit Line on the borrower’s credit report.
The Servicer relationship is the greatest leverage a school can have. At some point, a Default Borrower must pay-off the loan or settle the debt with the school to get out from under the negative credit reporting.
Schools Benefit from Servicer Leverage
- Servicer Reports Borrower to Credit Bureaus each month.
- Borrower sets-up account for ACH (automatic debit to ensure payments are on time).
- Servicer can provide Collection Services, negotiate settlements at your preference, or engage stronger collection measures.
- Servicer does all the payment handling, eliminating a costly burden for the schools.
- Servicer eliminates security concerns dealing with handling cash.
- Servicer eliminates accounting errors and delays in accounting input.
- Servicer eliminates Credit Card Monthly Fees and a host of other interbank charges.
- Servicer Reports to the Credit Bureaus can help students build their credit.
- Servicer has extensive web portal reports so the school can monitor their current and collections contracts.
- School can draw a report every day or every 15 days and follow up quickly on past due accounts.
Tuition Contracts that are paid on time and ultimately are paid in full will increase the Borrowers FICO Score dramatically, improving Credit Worthiness for attractive interest rates for their future success.
AFC School Approval Process
- Our School approval process is simple and easy like our program.
- Two years Financial Statements
We look forward to your call to discuss.
