Follow up collections
Hello,
I work in the Business Office and one of my daily functions is to monitor and collect funds from students that have "in-school" loans that need to be repaid.
Right now we are meeting with the students when they first enroll to discuss the importance of making on-time payments along with phone calls and facebook updates.
Another practice that we use is what we call the "blue-letter" system. This is where the Business Office will write up a note on a blue piece of paper and post it on a board in each class room. If a student has a blue letter they need to report to the Business Office.
Even with all of these practices we still have a number of students who are unresponsive. Does anyone have some other suggestions that we might be able to use?
The letter system seems to be the most effective form of getting the students into the offices to talk about their loans.
Thanks
Kristofer,
I think your "blue letter" system is quite a creative approach. Thank you for sharing that!
There always seems to be a few students who will be more of a challenge. Have you tried usuing faculty in helping to schedule times when you know the student would be in class and you could go to personally meet with them?
I would enjoy hearing some tips/sugestions others may use as well.
Cheryl Kesson
I am completly agree with you. I also believe one of the best way to reach and collect any past due on students are the letter system because I notice they answer quickly
Ricardo,
It is helpful to hear that this strategy has been successful for you!
Bringing communication from the Business Office and FA into classrooms or common areas creates awareness and demonstrates to students that they are not alone. If students see that communicating with the FA office is common for their peers, they may be more likely to respond and more willing to share information with us.
Kellee Gunderson
I also work in the Business ofice at my school. Most of our students do not have all of their tuition covered by grants and loans. They are on a monthly payment plan while they are in school to make payments on the remaining amount that is not covered. This amount must be paid in full before they graduate.
We send out monthy statements, and if a student's payment is 30 days late, we send out "past due" notices.
In those notices they are told that if they do not make their required payment by the 45th day, they will not be admitted to class until they have made their payment.
Each month, an email goes to Student Services with the names of the students on the "Do Not Admit" list. The Dean or Assistant Dean, then puts a notice in the instructor's mailbox if one of their student needs to come to the business office before they can attend class.
This eliminates the need of having to make numerous phone calls to students with past due balances. It also gets other faculty involved in the process.
Not being able to attend class has proven to be a great motivator. It also gives the student an awareness of the importance of repaying their debts on time.
Susan,
This is certainly an effective way to demonstrate the importance of handling debt responsibly! I suspect that the foundation you establish with payment of tuition balances eases students into planning for federal loan repayment. By the time they graduate, they are already in the habit of budgeting for regular payments, so the end of grace will not be as shocking to them as it is for students who have blissfully ignored their debt while attending school.
For schools that do not have the same tuition structure as yours, getting students into the habit of making small regular interest payments can also be a great way to promote responsibility (with the added benefit of mitigating capitalization).
Kellee Gunderson
