Monthly Finance Charge
What is the finance charge?
Tuition, fees, room and board less financial aid for each semester is due when billed at the beginning of the term. When charges are not paid by the due date, a finance charge is added to the student’s bill equal to 1.5 percent of the unpaid balance.
Why is it charged?
The charges collected at the beginning of each semester provide EMU with the money it needs for day-to-day operations. When those charges are not paid by the due date, the school must borrow money. The cost of borrowing is passed on to students in the form of finance charges.
Why is such a high rate used for the charge?
The rate is high for two reasons. One is to discourage “borrowing” from EMU, which is what late payments do. The second is the need to pay the additional administrative costs of following up with students who do not pay on time.
Is EMU out of step with other colleges and universities?
The EMU policy is consistent with the policy of other colleges and universities.
When can I expect a finance charge to be applied?
EMU does not apply finance charges until the end of October and February. This allows time for financial aid to be received.
Why should my account receive a finance charge when financial aid or loan payments arrive late?
In many cases, the late arrival of loan or aid is due to late or incomplete application by the student. Even though EMU staff help with some of the paper work, it is the student’s responsibility to see that the appropriate applications are made and the due dates met.