The Consumer Financial Protection Bureau (CFPB) released a report on tuition payment plans offered by colleges 

These plans, signed up for by nearly 4 million students each term, were found to have potentially predatory terms and debt collection practices 

Tuition payment plans aim to help students by spreading tuition costs over interest-free payments 

However, the CFPB discovered that these agreements often have confusing and potentially illegal terms, including late fees 

Missing just one payment could result in hundreds of dollars in late fees, meal plan loss, and even expulsion from classes 

Many schools charged enrollment fees (up to $250) and late fees (average $46, with some as high as $300) 

Some payment plans didn't disclose consequences of missed payments, putting students at risk of accumulating fees 

Students who miss payments may face aggressive debt collection practices and could waive their legal rights 

Some students were forced into payment plans if federal aid didn't cover tuition, resulting in financial difficulties 

The CFPB is monitoring these plans to ensure compliance with consumer laws, while also cautioning borrowers about potential scams in the higher education industry