Many families use the tactics discussed above to improve their cash flow. But when large tuition bills come due all at once, families often turn to tuition payment plans to "spread out" those larger bills over a period of months instead of borrowing the money or liquidating an investment account.

Tuition payment plans are offered through the schools, but are usually administered by outside payment plan companies. These plans are a good solution for many families that may have an adequate income stream to pay the bill, but just can't do it all at one time. Commonly there is an annual fee of between $35-$75 dollars per student to administer the plan, but neither the school nor the plan will charge any interest for the convenience of being able to pay tuition bills over a series of months.