Balances after Dropping

From: Peter Beilharz (peterb@admin.stedwards.edu)
Date: Thu Feb 21 2002 - 17:40:23 EST

  • Next message: Jim Fariss: "COLLECTIONS 2002"

    Julia,

    We are a similar school. What we do is add a Transcript hold(so they can't
    get a transcript), Registration holds(so they can't register for future
    semesters), we send them a Certified return receipt demand letter giving them
    a certain number of days(30) to pay or else we send them to collections. We
    do inform them there may be some alternative loan options that can cover
    their balances even after they withdrawl. A lot of times this will get them
    to contact us because they see we are willing to work with them on their
    balance. Once they have paid, we remove all the holds. However, if they
    don't pay they get sent to collections. We are willing to set up some kind
    of "special arrangment" payment plans where we collect a signed contract from
    them promising to make a specified reasonable monthly payments. If they
    fail to meet the terms of the "special arrangement" we tell them they will
    be sent to collections. Telling them all kinds of nasty stuff that will happen
    to their credit as a result of that happening(you will have problems buying
    a house or care etc). The "special arrangement" option helps us keep
    some of our balances from going directly to collections where you have to
    write off a larger portion of your uncollected balances at the end of the
    fiscal year.

    Hope this helps a little.

    Have a great day.

    Peter Beilharz
    Bursar
    Office of Student Financial Services
    peterb@admin.stedwards.edu
    Tel. (512) 448-8521
    Fax. (512) 416-5837
    St. Edward's University

    >
    > Hello,
    >
    > I am curious how other schools deal with the issue of students who drop
    > and owe substantial balances that are not covered by aid. We are a
    > small, private non-degree school that enrolls students into certificate
    > programs. On occasion, I have students who drop and end up owing $1000 -
    > $5000. We have had discussions at the school on what we can do regading
    > this issue since not too many of them want to pay a balance after they
    > drop. Do other schools forgive balances? Or send them to collections?
    > Any ideas, thoughts, policies, etc... would be greatly appreciated.
    > Also, are there any ideas out there on how to prevent this. I know
    > having students pay upfront is one, but usually this does not happen.
    >
    > Thanks,
    >
    > Julia Lowder
    > CSI
    >
    >



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