Is there a way to structure payment schedules without triggering TILA obligations? If you are concerned about meeting TILA`s appropriate disclosure requirements, there are opportunities for independent schools to structure payment plans without triggering TILA. First, schools can offer payment plans of four installments or less and ensure that they do not use funding fees or offer discounts for forms or payment plans. But be careful, as financing costs and discounts are wide. Secondly, TILA does not apply, since the credits relate to the right to deferred the payment of debts, if the school`s payment plans allow payment in different tranches before the end of the study amount. As a result, independent schools could propose advance plans (even if they offer more than four payments) without triggering TILA commitments. For example, at the beginning of each semester, a school could provide an education due and structure the payments to be paid before the beginning of each semester. What`s to be done? When a school uses a payment plan that refers to TILA, it must cooperate with its study management to ensure that the necessary information is provided in accordance with TILA requirements. Although TILA is not a difficult law to follow, logistics can be difficult because financial information needs to be adjusted for each family. Given the potential consequences for non-compliance, it is important that schools monitor TILA in structuring their registration process and completing registration contracts, payment schedules and all necessary disclosures. When is an independent school submitted to TILA? If your school offers payment plans that allow families to defer payment of tuition fees, you should carefully consider their plans. TILA applies if: If TILA is valid, what does it require? If your school`s payment plans are submitted to TILA, registration should be a two-step process. First, schools must inform families of available payment options.