Updated on August 4, 2020
How to Pay for Residential Treatment for Teens
Residential treatment for teens can be costly. The time spent in treatment can be weeks or even months. The day to day costs are what you might expect in feeding and sheltering someone but it is specialist treatment, in therapy sessions both one on one and in groups which can turn the stay into a bill of thousands of dollars. You may obtain a scholarship in some cases and your insurance may help in part. But there are a number of alternatives when it comes to footing the bill.
The first step is to consult the residential center. In fact you should do this before you actually choose the facility. How can I pay for the cost of treatment for my teen? Their alternatives may be the one factor which helps you choose one institution over another.
Credit cards are universal but are not always the best option. If you take a card on the promise of a low rate for the first few months, be careful that the stay does not exceed the low-interest period. Then there are some institutions which simply don’t take credit cards or charge a handling fee if you choose this method of payment. And if you get behind in making the monthly payments, the bill for the treatment can soon leave you with a sizable interest fee to pay.
Personal loans from a bank are generally cheaper than using a credit card. You would need to supply the usual guarantee but if you have property or other assets, a personal loan and for such a good cause is likely to be granted.
Part payment to the institution is a sensible way forward. If your teen is likely to be in residence for say four months, you could pay a month at a time. Many reputable institutions know that parents are not always in a position to pay the total fee in one hit. Ask about part payment plans.
Education loans are just that – money borrowed to pay for tuition fees, books etc usually for your child’s college education. They often have a set-up charge of about 5% of the loan and again you should be sure to find the exact cost of the total loan before applying.
A tuition loan is more specific and is targeted at perhaps additional tuition for a specialist subject. This may well be the case if your teen is going to reside in a treatment program for several months.
No matter which method payment you choose to use, remember that negotiation is alive and well. If you are in the fortunate position of being able to pay the entire fee without needing a loan, ask about a discount for cash. Such a payment is to the advantage of the treatment center and the least they can do is reward you for your offer.
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