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For any questions please send e-mail to: NDSU.Policy.Manual@ndsu.edu

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SECTION 513: NDSU COLLECTION POLICY

SOURCE: SBHE POLICY Section 802.1 and NDSU President

1. STUDENT RECEIVABLES

1. 1

Tuition and fee charges will be billed to a student's account at least 21 days prior to the start of each new semester. Monthly statements will be sent to the student's local address with the exception of the first billing of the Fall semester which will be mailed to the student's home address. Monthly billings will follow the schedule outlined in "Other Receivables". (Students who register after July 31st for the Fall Semester and November 30th for the Spring Semester will not be sent a bill prior to the start of the new session. These students should use ALFI, Access Line for Information, to obtain their account information.)

1.1.1

Payment in full (with the exception of financial aid recipients) will be due the first day of each new session, unless prior arrangements have been made with the Customer Account Services Office. The only installment method of payment approved by the Customer Account Services Office for tuition and fee payment is AMS (Academic Management Services).

1.1.2

Any check used to pay tuition and fees which is returned for non-sufficient funds (NSF) will result in the cancellation of current and subsequent term registration. If the individual has already written one NSF check to NDSU in the past 12 months, the Customer Account Services Office will not accept another check from this individual for one-year and will ask other campus departments to also refrain from accepting checks for that same period. In addition, a "Customer Account Services Office" hold will be placed on his / her account.

1.1.2.1

In the event of cancellation, a student may re-register for classes under the guidelines established by the Registrar, but prior to re-registering will be required to prepay their account using cash, certified funds, or credit card at a level equal to the same number of credits as were canceled. The student will also be responsible for the late registration fee and a late payment fee. Students will not be allowed to use the cancellation process to receive a refund for dropping a class.

1.1.2.2

If a student does not re-register for classes that same semester, the student must prepay his/her first subsequent semester at NDSU if within the 12 month period referred to in Section 1.1.2.

1.1.2.3

A Customer Account Services Office hold freezes a student's registration privileges, including their ability to process a course drop/add, order a transcript, receive a diploma, or register for the next semester.

1.2

Following financial aid disbursement, a letter will be sent to the local address of those students (including late financial aid recipients) who have made no payment on their account. This letter will state that if a minimum payment is not received as of a specific date, their current and subsequent term registration will be canceled. If the student is living in a Residence Life facility, a copy of the letter will be sent to the Residence Life Office.

1.3

All students, including late financial aid recipients, with no payment activity on their accounts as of the cancellation date will have their current and subsequent term registration canceled. In addition, a "Customer Account Services Office" hold will be placed on their account (see #1.1.2.3). A student may re-register by following the procedure outlined in #1.1.2.1.

1.4

Prior to mailing the October and March statements, the Customer Account Services Office will assess a late fee on all student accounts that still have a tuition and fee balance. In addition, a Customer Account Services Office hold will be placed on all student accounts (see #1.1.2.3) that have amounts owing which are more than 30 days old.

1.5

A Customer Account Services Office hold will remain in effect until all prior semester charges have been paid in full. This includes students with late financial aid and students whose accounts are paid by a third party.

2. OTHER RECEIVABLES

2.1

Billing statements are mailed monthly (30 days).

2.1.1

Checks used to settle accounts which are returned for non-sufficient funds (NSF) will be sent directly to a collection agency for collection. If the individual / company has already written one NSF check to NDSU within the past 12 months, the Customer Account Services Office will not accept another check from this individual / company for one year and will ask other campus departments to also refrain from accepting checks for that same period. In addition, a Customer Account Services Office hold will be placed on all student accounts (see "Student Receivables #1.1.2.3) until the money due is collected.

2.2

A second statement will be mailed approximately one month after the first statement (60 days). The statement will include a finance charge on all amounts more than 30 days past due of $1 or more.

2.2.1

On all accounts that have not been paid in full, a collection letter will follow 15 days later indicating that the account is considered to be past due and asking that the individual / company refrain from making additional charges until their account is paid in full. The letter will also state that future reimbursement checks (excluding flexible benefits) will be captured to meet the account obligation.

2.2.1.1

If the individual is a student, a Customer Account Services Office hold will be placed on their account (see "Student Receivables #1.1.2.3). In addition, if at any time during the "hold" status, a check payment is made on account which results in a "lift" of the hold for registration purposes and the check is returned for non-sufficient funds, the individual's subsequent term registration will be canceled (see "Student Receivables #1.1.2.).

2.3

A third statement will be mailed approximately one month after the second statement (90 days). This statement will include a finance charge on all amounts more than 30 days past due of $1 or more.

2.3.1

On all accounts that have not been paid in full, a collection letter will follow 15 days later indicating that the individual's account is considered to be past due and that the individual no longer has charge privileges on campus. A copy of this listing will be forwarded to the appropriate campus departments stating that the individual / company no longer has charge privileges on campus.

2.4

A fourth statement will be mailed approximately one month after the third statement (120 days). This statement will include a finance charge on all amounts more than 30 days past due of $1 or more.

2.4.1

On all accounts that have not been paid in full, a collection letter will follow 15 days later indicating that the individual's account is considered to be seriously past due. In addition, a copy will be forwarded to the Accounting Office asking that reimbursement checks be issued for those individuals with direct crediting so that the Customer Account Services Office can capture these checks until the account has been paid in full.

2.5

A fifth statement will be mailed approximately one month after the fourth statement (150 days). This statement will include a finance charge on all amounts more than 30 days past due of $1 or more.

2.5.1

On all accounts that have not been paid in full, a collection letter will follow 15 days later indicating that if payment in full is not received within 15 days, the account will be turned over for collection and the debt may be listed on a national credit rating report.

2.6

If within 30 days of the fifth statement (180 days), payment in full is not received, the account will be turned over to a collection agency. In addition, NDSU will also request that the bad debt be listed on a national credit rating report. A copy of this listing will be forwarded to the ID Card Department and Telecommunications stating that the individual's account with the University has been turned over for collection and that they are no longer eligible for the services rendered by those departments. In addition, prior to referral, all monies on deposit with the ID Card Department will be applied against the account.

2.6.1

If after collection referral, an individual/company is able to document that the charges in question should be reversed, the individual/company will still be responsible for the collection charges resulting from the referral.

2.6.2

If after one year, the collection agency is unable to collect the balance due, the account may be called back and will be referred to a second collection agency.

2.6.3

If after two years, the second collection agency is unable to collect the balance due, the account will be called back and the amount may be written off. However, if the account charges are related to tuition and fees, the account will remain in bad debt status forever thus resulting in a permanent Customer Account Services Office hold on the account (see "Student Receivables" #1.1.2.3). In addition, a letter may be sent to all other NDUS campuses asking that NDSU's hold be honored at their campus.

2.7

An individual whose account has been referred to a collection agency and who wishes to register at NDSU must prepay their registration if fewer than 180 days have passed since their account was settled with the collection agency.

HISTORY: November 1997; Amended May 1998, October 2007