Prepayment Discount Program
PurPose
The 1417Power Prepayment Discount Program offers a discount to individuals with a prospective Student Employee(s) (“SE”) they desire to pre-enroll. The Prepayment Program option provides a lower monthly cost because there is a discount and payments are spread over a longer time period. The Prepayment Program can apply to any duration of participation for a prospective SE.
Enrollment
Sponsors may participate in the Prepayment Discount Program for SE enrollment at any level and for any duration starting at a future date. The Prepayment Discount Program offers a discount on the total price at the rate of 2% for each full year the prepayment starts in advance of SE participation. The monthly payment is determined by multiplying the monthly participation level rate times the sum of participation months then applying any discount to determine the Prepayment Discount total fee. This total is divided by the sum of the prepayment months plus the participation duration months to determine the reduced monthly fee.
Example
Sponsor desires to start prepayment 48 months prior to prospective Student Employee’s (“SE”) 14th birthday and elects to have the SE participate in the 1417Power program for 36 months at the $500 per month level.
The Math
Total standard fee: $500 x 36 = $18,000.00
Discount: 48 months prepayment is 4 years: 4 x .02 = .08
Prepayment total fee: $18,000.00 x (1 - .08) = $16,560
Resulting monthly fee to be paid for 84 months:
$16,500 / 84 = $196.43
Monthly fee is reduced from $500 to $196.43
Years Prepayment |
Percentage Savings |
|---|---|
1 |
2% |
2 |
4% |
3 |
6% |
4 |
8% |
5 |
10% |
6 |
12% |
7 |
14% |
8 |
16% |
9 |
18% |
10 |
20% |