1.0  Student Accounts Receivable

Each campus is required to have a written process that explains its registration, billing, payment requirements and cancellation procedures for academic credit courses.

Each campus must utilize a student financial obligations agreement to disclose the financial terms and conditions subsequent to a student’s registration.  The financial obligations agreement must record each students’ affirmance and provide for provisions as established by Student and Receivables Business Services (SRBS) with direction from the University Comptroller and the Office of Legal Counsel.    

Each campus must ensure that Past Due payments are received prior to the student attending class or registering for an upcoming semester.

For purposes of this operating procedure, payment includes satisfactory enrollment in the Installment Payment Plan or one of the approved deferment plans as described below.

The University will invoice in an accurate and timely manner any additional charges and/or adjustments to Student Accounts Receivable arising from financial aid revisions, modification of enrollment, changes in registration or other circumstances. Such invoices for non-registered students are to be sent via U.S. mail; invoices for registered students may be communicated electronically or via U.S. mail.

1.1   Deferment and Payment Plans

The deferment and payment plans listed below are acceptable alternatives to the Credit and Collections Operating Procedure on securing payment prior to the provision of service for Student Accounts Receivable. Effective procedures and controls must be implemented to ensure prompt payment, reduction of collection effort and reduction of bad-debt expense whenever exercising these payment options. Each campus must include in their credit and collections business process the specific administrative procedures to manage Student Accounts Receivable deferment and payment plans. Deferment plans may be assigned only with approval of the appropriate Bursar or his or her designee.

1.1 a.     Installment Payment Plan

The Installment Payment Plan may be offered to registered students to pay tuition, housing and other Contracted or Miscellaneous Non-Contracted Student Charges in monthly installments over a specified term. Students wishing to participate in the Installment Payment Plan option must affirmatively enroll according to the procedures for their campus and provide the required down payment. The Installment Payment Plan program at each campus must be established in accordance with Truth in Lending Regulations.

1.1 b.     Financial Aid Deferment

Financial Aid Deferments may be issued to any student, regardless of credit hours, employment or resident status, who is in jeopardy of Registration Cancellation. This deferment must be supported by the student in question having actual aid in process, as documented by the Financial Aid Office, that is not yet reflected on the student’s account. Financial Aid Deferments must be assigned with the expectation that actual aid, as estimated by Financial Aid Office staff members, will materialize within a timely basis.

1.1 c.     Personal Fee Deferment

Personal Fee Deferments carry a higher credit risk and therefore are to be administered carefully. Personal Fee Deferments must be evidenced by a signed promissory note and include cancellation provisions in the event of non-payment.  Minimum standards and criteria as well as realistic payment expectations must be outlined in each campus credit and collections business process.

1.1 d.    Class Action Deferment

Each campus must provide in its credit and collections business process the minimum criteria for assigning Class Action Deferments.

1.1 e.     Third Party Deferred Billings

Contracted Student Charges approved to be deferred based upon a Third Party Billing are credited to the student’s account and billed to the third-party sponsor. Third Party Billing procedures must include timely follow-up notices to the sponsor. An unpaid Third Party Billing will revert back to the student’s account. Each campus must provide in its credit and collections business process the contractual requirements for sponsors of Third Party Billings, as well as the time line followed to bill, collect and revert Third Party Billings to students’ accounts.

1.2   Student Loan Accounts Receivable

Student Loan Accounts Receivable must be implemented and administered according to federal, state and University regulations. The SRBS will manage the fiscal and collection activity of Federal Perkins, Health Professions and Purdue University student loans regardless of the originating campus. Procedures to establish a student loan fund as well as the disbursement, billing, collection and fiscal responsibilities must be included in each campus’s credit and collections business process.

1.3   Miscellaneous Non-Contracted Student Charges

Miscellaneous Non-Contracted Student Charges that are billed through the campus student billing system to the student’s account will provide a periodic billing notice and include a payment due date no later than 30 days from the date of billing. Any charges billed to a student outside of the student billing system, except for Student Loan Accounts Receivable, will be considered Non-Student Accounts Receivable for administration purposes. Refer to Section 2.0 of this operating procedure for information on Non-Student Accounts Receivable.

1.4   Student Financial Holds

A Financial Hold will be placed on a student’s record if he or she incurs a Past Due payment. The University will notify the student whenever a Financial Hold is placed on his or her record. All Past Due payments must be received before a Hold is released. Under certain circumstances, a Hold may be released without payment in full. The timing and logic used to assign Financial Holds and the circumstances under which Financial Holds may be released without payment in full, as well as the staff assigned 

 

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