Institutional Student Bad Debt Write-off

From: Anders M. Nilsen (nilsena@mcc.cc.fl.us)
Date: Thu Jun 14 2001 - 18:12:58 EDT


Hello List,

I have a question from my VP for Finance, how do you handle student bad debts?
By student bad debt receivables I am including the following:

Returned Checks
Tuition Deferments
Short Term Book Loans
Student Pell Grant/FSEOG Grant Liabilities (due to never attending a class,
    changes to audit, etc. We now assign these to the USDE)
Tuition and Bookstore charges due to the Federal Return of Title IV Funds

The specific questions asked were:

1. How long do you try to collect the accounts before sending them to
collection?

2. How long do you leave them with collection?

3. Do you authorize the collection agency to sue?

4. At what point do you write-off the student account, and
    what is the estimated amount to be written-off this year (2000-2001)?

Thank you,

Anders

the write-off
of

Anders M. Nilsen, MBA
Director, Financial Aid
nilsena@mcc.cc.fl.us
Voice: 941-752-5309
Fax: 941-727-6179



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