Study Now Pay Later (SNPL)

In general terms, a Study Now Pay Later Agreement (SNPL) is a contractual agreement in which a student receives education funding in exchange for repayment of the amount in installments.

SNPL covers 100% of a student’s tuition. The amount depends on the student’s tuition (varying based on the degree of the student).

It’s a fixed amount of $500 every month when you make $2,500 or more a month ($30,000 or more annually). Repayment term finishes when the total amount of SNPL is completed.

The program does not replace government-subsidized student loans, but does offer students another option to pay for their education should they need additional resources or favor a more flexible funding alternative. An SNPL could be a good alternative to private student loans.

SNPLs offer students an alternative way to pay tuition. Students can start, study and graduate without thinking about financials. SNPL repayments are due, making money gives extra comfort to the students not to worry about their career.

In general, debt creates substantial risks for students if they cannot afford their payments during and after college, whereas there will be a minimum income threshold, so students who use the program will not pay if they do not meet a minimum income level.

An SNPL doesn’t mean that you are getting money as a loan, yet it defers your tuition payments for post-graduation. Students are simply required to pay the tuition in installments of $500 every month. After making successful payments over that term, no additional payments are required.

The SNPL may be prepaid by paying the total payment amount that is stated in your disclosure.

Your SNPL will pause in the period where you are not employed and it will resume when you resume your employment.

Your SNPL monthly installments will start after you get a job which is more than $30,000 a year, otherwise your SNPL repayment doesn’t start.

One of the ways that an SNPL differs from a traditional loan is that students aren’t accruing interest on the total amount funded and this is the beauty of it.

SNPL is a deferred payment method where students pay their tuition in installments when they make money, without any interest. Comparing SNPL to paying tuition upfront, there is no risk but only advantages.

Once payments have been made equal to the payment that is stated in the disclosure, no more payments are required.

SNPLs are among many options that are available for education funding. Students, parents and/or guardians should research which options work best for their individual situations.

Students are afforded a one-month grace period after graduation or the commencement of employment before payments are required.

There are no requirements stipulating the nature or type of employment that students choose after graduating.

The SNPL offering is available to all students, but there is a first-come, first-served policy due to the high demand. ALT+U is constantly looking for ways to increase SNPL's offering size.

A student’s individual education financing plan should include an assessment of all of the options available based on their individual financial situation.

If you voluntarily leave the workforce, your SNPL will be paused and not be in payment status. Your SNPL payment term will be extended by the amount of time you take off.

The SNPL application is made at the time of the school application. When applying to the university, you should choose SNPL as your payment option

If a student has had a collection of credit action taken against them that is paid or unpaid, their application will not be approved. Examples of credit actions include garnishment, lien attachment, judgment or tax lien; bankruptcy; or unsatisfied suit or judgment.

There is a minimum income threshold to make monthly SNPL payments, so students who use the program will not pay if they do not meet a minimum income level. Whereas the repayment obligation of a student loan continues regardless of the student’s financial situation.

Students end up paying a high interest in regular loans but there is no interest rate on the total amount funded through SNPL.

You’re likely to repay more than the amount you received with an ISA if you’re a higher earner or have higher percentage terms. For SNPL, you only repay the amount you borrowed through the program.

As a successful graduate, your earnings are expected to increase over time, so the amount you’ll be paying overtime is guaranteed to increase with an ISA. Instead of losing a fixed percentage of your income each month through an ISA, you could be investing that percentage toward an investment and retirement account if you use SNPL.