Spread UAE school fee payments over 18 months - but be careful

Parents can spread the cost of tuition over 18 months with the NBAD Aldar Academies Visa Platinum Credit Card - the latest player in the education-linked financial products market.

Students pottery painting at Pearl Primary School (one of the Aldar academies) in Abu Dhabi. Ravindranath K / The National

It’s the start of term and - for many parents - it’s a time to scratch their heads and work out how they are going to pay the school fees.

With such large lump sums demanded each term, it’s no wonder some parents turn to education-linked financial products to help manage the payments.

The latest player in this market is Aldar Academies, one of the largest providers of private education in Abu Dhabi. The company has teamed up with National Bank of Abu Dhabi to launch the new NBAD Aldar Academies Visa Platinum Credit Card.

The idea behind the card is that parents can pay annual fees along with other school related payments in 18 easy instalments at 0 per cent interest.

It sounds great - spread the cost of tuition over 18 months. My only concern here is if you then pay the next year’s fees the same way - over another 18-month instalment. Logic tells me that at some point during the second academic year, you will be paying two sets of instalments at the same time - effectively doubling your tuition payments for six months. A 12-month spread of payments would be a more sensible option for most parents.

NBAD is also partnered with Gems, another big player in the UAE’s education market. Holders of the Gems Titanium credit card can earn up to 7 per cent discount on advance payments for Gems school fees. There is also the option to spread payments over 12 months.

But these cards aren’t just about making school fee payments more affordable. They are, at the end of the day, credit cards - profitable financial products for banks and any organisations they are partnered with. So, anyone signing up for one must ensure they pay off their balance to avoid racking up high interest rates on outstanding balances.

That’s not to say financially responsible parents can’t benefit. The new card from Aldar Academies and NBAD also encourages financial responsibility among children by offering the option of a prepaid card in a child’s name. Parents that want their children to learn about saving and spending money wisely can apply a daily spend limit and monitor their child’s transactions via SMS message alerts.

Other benefits include complimentary airport transfer services, and redeemable Etihad Guest Miles, Skywards Miles from Emirates, and flydubai e-vouchers for every Dh1 purchase, among others.

Meanwhile, NBAD’s Gems-branded cards have lifestyle benefits such as access to Fitness First Clubs four times a month for Dh15 per visit, two complimentary airport transfers and movies for Dh5 on a weekday at Reel Cinemas.

A tip for anyone interested is the same as would apply for any credit card: enjoy the benefits but pay off the full balance every month.

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