Your stomach is in knots. Your palms are so sweaty you can’t hold your pencil. It’s the first time all semester that you haven’t done your calculus homework. And you’re convinced the teacher is going to call on you next.

Many students (and parents) experience that same feeling of dread when they think about paying for college. They worry that they haven’t done their financial planning homework. They fear being caught unprepared when it’s time to pay.

If you fit into this category, first take a deep breath . . . then take a minute or two to read this page. Even if you and your parents haven’t been saving for college since before you were born, it’s not too late for some wise payment planning. Here’s a three-step plan to follow during your senior year.

Did you know that many schools offer tuition payment plans, which allow you to divide your college bill into 10 or 12 monthly installments without having to pay any interest costs? Your payments become part of your monthly budget, just like your rent or car payments. If it’s possible to use a payment plan and make your payments using a combination of current income and savings, you can s...