Responsible position(s):

  • Collections designee in Bursar's Office

Required documents and access:

  • Banner

Frequency and timing:

  • Within 90 days of student's separation

Steps:

  • Notify former students in writing of the intent to place with collections agencies after 30 days, providing an opportunity to repay or set up payment plan terms.
  • Send a follow-up letter at 60 days past due indicating that the account will go to a collection agency in 30 days if not paid (90 days).
  • Place with collection agency after 30 days
  • Notify former student of placement with agency providing agency contact info, no further contact with university, forward to agency.
  • Sample text: We have not heard from you regarding your balance due as of DATE. If we do not receive your payment by NEW DATE, your account will be sent to a collection agency, and you will be responsible for the stated charges as well as applicable collections costs added by the agency.
  • Sample text: We have not received your payment and you have not contacted us to propose a payment plan. Your account is now being placed with XYZ collection agency and will be reported to the credit bureaus. Please contact XYZ Agency at NUMBER if you have any questions about your account.

Bad Debt and Allowance for Student Receivable Credit Losses

Responsible position(s):

  • Controller

Required documents and access:

  • AR Aging

Frequency and timing:

  • Annually, fiscal year-end entry in accrual period

Steps:

  • Calculate current expected credit loss (CECL) based on historical collection rates of receivables.