# How to reduce fee defaulters by 40% using a school ERP

> Concrete tactics that EduGradUP schools have used to cut fee defaulters by 40% or more — automated reminders, sibling-aware discounts, instalment plans and wallet integration.

Source: https://edugradup.com/blog/how-to-reduce-fee-defaulters-by-40-percent/

Fee collection is the single biggest cash-flow risk for most schools, and defaulter rates of 15–25% on the due date are common. Schools that move to EduGradUP routinely see defaulter rates drop to under 10% within a single fee cycle.

The tactics are simple but require an ERP that supports them. (1) Automated multi-channel reminders — SMS, push, IVR and email — in the parent's preferred language. (2) Sibling-aware discounts and scholarship rules applied automatically. (3) Flexible instalment plans with mid-month due dates. (4) One-tap wallet payment from inside the parent app. (5) Auto-reconciliation against the student ledger so receipts go out instantly.

Combined, these tactics typically lift on-time collection from 60–70% to 90%+ within two cycles. The accounts office spends less time chasing payments and more time on financial planning.