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UNIVERSITY OF NORTHERN IOWAACCOUNTS RECEIVABLE PROCEDURESSTUDENT ACCOUNTS RECEIVABLEThe Office of Business Operations, through the Bursar and staff, is responsible for collecting all student debts owed the University of Northern Iowa. The Bursar's support system is an integrated cashiering and student accounts receivable system. The Student Accounts staff is responsible for producing all-inclusive electronic invoices for students (which are referred to as e-bills), collecting payments on account, imposing sanctions when students do not pay their accounts, counseling students in debt to the University, establishing custom payment plans when necessary, hearing student appeals regarding e-bills as a member of the Tuition Appeals Committee, and collecting delinquent accounts through the use of collection agencies and/or litigation. A monthly e-bill is produced for each student with an unpaid balance on the tenth of each month. Students have until approximately the fifth of the following month to pay the minimum amount due on their e-bill. If a student fails to pay the minimum amount due on his or her e-bill, the student is placed on Restricted Enrollment status, which means that transcripts are withheld and the student is not permitted to register for classes for subsequent semesters until the account is brought current. If an account has not been brought current after three months, the Student Accounts staff attempts to contact the student by telephone to alert them of their past due account. The student is asked to bring their account current or make acceptable payment arrangements. If an account has not been brought current after four months, a Final Demand for Payment, which functions as a "Notice of Cure”, is sent. It instructs the debtor to bring his or her account current within 10 days or to make arrangements for paying the debt with the Student Accounts staff. If the account is not brought current or acceptable arrangements made within 30 calendar days of the Final Demand letter, the account is referred to an outside collection agency. EXTENSION OF CREDIT/EDUCATIONAL LOAN Registration for classes creates a legally binding financial obligation to pay tuition and fees per official University policy as published in the Schedule of Classes each semester . Registration for classes constitutes an understanding and acceptance of this responsibility. Students are expected to have made the necessary financial arrangements prior to enrolling for classes. Any financial assistance from the University should be arranged prior to the start of classes through the Financial Aid Office. Students who fail to make arrangements for financial aid in advance of the semester are responsible for making all payments due while a financial aid application is in process. The University considers this extension of credit to be an "educational loan" under Federal and State laws. Ed ucational loans" are not dischargeable under Federal bankruptcy statutes, unless specifically so ordered by the bankruptcy court.STUDENT STATEMENTS OF ACCOUNT (E-BILLS) Tuition, fees, room, board, apartment rent, and other authorized departmental charges are billed on a monthly statement. Students who have an account balance will receive an e-bill based on activity entered in the accounts receivable database through the tenth of the month. Enrolled students are sent an e-mail reminder to their University e-mail account when an e-bill is generated, typically the 11 th of the month , and access their e-bills via the MyUNIverse secure web portal. Students can also access their account daily for any changes since their last e-bill. All billings are sent to the student, not the student's parent. Students are advised in the University Catalog and in the Schedule of Classes that failure to access their e-bill is not an acceptable rationale for not making payment when due. Accounts receivable Due Dates are published in the Schedule of Classes, outlined on the Student Accounts web page, and posted outside the Office of Business Operations and Registrar's Office. Students who do not receive a bill are expected to contact the Office of Business Operations to determine the reason. ADDING CHARGES TO STUDENT ACCOUNTS Current semester charges and adjustments for tuition, mandatory fees, and contracted room and meal plans are automatically posted to student accounts by scheduled computer programs the evening of the tenth of each month, and on Tuesday evenings throughout each semester. Prior semester charges and adjustments are posted by authorized employees via on-line student account access. Other departmental charges and student authorized charges using their U-ID are posted daily by authorized employees via on-line student account access. Departments with a large volume of transactions may accumulate charges and transmit batched files in an authorized format by e-mail attachment or FTP. These files will be uploaded to student accounts daily. In an effort to keep student accounts up to date, charges should not be accumulated for more than one week.ADDING FINANCIAL AID TO STUDENT ACCOUNTS Current semester Financial Aid credits and adjustments are automatically posted to student accounts by scheduled computer programs the evening of the tenth of each month, and on Tuesday evenings throughout each semester. Prior semester credits and adjustments are generally posted on Friday evenings. Payments may be made at one the following locations
Payment is due upon receipt and payment must be received by the Due Date to avoid being placed on Restricted Enrollment status (see next page for more information on Restricted Enrollment). Payments received at the Cashiers' windows will be receipted and credited to student accounts at that time. Payments received in the mail , or deposited in the drop box by 4:00 p.m. will be recorded on the same date.The University offers a Deferred Payment Plan for tuition, fees, and contracted room and meal plan charges. The Deferred Payment Plan allows students to make payments in three installments in the Fall and Spring semesters, and two installments during the Summer term. The administrative fee for using the Deferred Payment Plan is $20 per Fall and Spring semester, and $15 for the Summer term. If one desires to avoid this fee, the Total Due must be paid each month by the Due Date. Once assessed, the Deferred Payment Fee is non-refundable. Failure to make timely payments may result in revocation of the privilege to pay in installments.RESTRICTED ENROLLMENT (A/R HOLD) Failure to pay at least the Minimum Due by the Due Date places the student on Restricted Enrollment status. While enrolled, a $25 Restricted Enrollment Fee is assessed each past due account of $100 or more each month. When not enrolled, there is no Restricted Enrollment Fee. The University strictly enforces a policy of not allowing students to register for classes, obtain transcripts, or receive other non-essential services until their account is brought current. Habitual or large delinquencies may result in cancellation of registration and an order to vacate University housing, at the discretion of the Bursar. Restricted Enrollments (Accounts Receivable Holds) are automatically removed when an account is brought current. The Bursar is authorized to make Custom Payment Plans under extraordinary circumstances for currently enrolled students. THIRD PARTY BILLING (SPONSORED STUDENTS) Third party billing is for students who will have all or part of their bill paid by a governmental agency or a pre-authorized organization (sponsor). Third party billing is NOT for a student whose bill is being paid by another individual or through an employer reimbursement plan. The sponsor must submit written authorization clearly stating what charges will be paid and also stating any limitations. Student Accounts staff will then issue a credit to the student’s bill through the Financial Aid system, per the authorization. After the second week of classes (end of the drop/add period) the sponsor will be invoiced accordingly by Student Accounts. If the invoice is not paid within 60 days, Student Accounts staff will contact the sponsor by telephone to request payment. If the invoice remains unpaid after 90 days, the credit will be reversed from the student’s account and the student will be responsible for payment. Important Note: The sponsorship agreement is between the sponsor and the student. The University is NOT a party to the agreement and assumes no liability for failure of either party to comply with provisions of the agreement. The student remains ultimately responsible for payment of the bill and for reimbursement to the sponsor of any amounts received in error.Reduced Payment Arrangements are considered for persons not currently enrolled as students. (Enrolled students are expected to pay according to the policy as stated above.) Former students who cannot pay their account in full should pursue financing from an outside source such as family, friends, or lending institutions as the University does not grant financial aid to liquidate indebtedness to the University. In order to avoid referring the account to a Collection Agency, the University will, as a last resort, accept monthly payments. The monthly payment should be as large as possible. The minimum monthly payment is 10% of the Total Due (rounded) but not less than $50.00. Missing a single payment can result in the cancellation of the Reduced Payment Arrangement and referral to a Collection Agency. All Reduced Payment Arrangements are subject to cancellation if the former student does not honor his or her commitment with Student Accounts. When a Reduced Payment Plan is in effect the account is still considered delinquent and the student is subject to Accounts Receivable and Bursar Holds, as appropriate. The account is also subject to offset under the Iowa Tax Offset Program. Debts to the University of Northern Iowa are considered to be debts owed the State of Iowa. As such, account balances are not written off except in rare cases, for example bankruptcy court orders. University policy directs that accounts be written off in the case of death of a student. The Bursar has been given the discretion to write off small balances ($20 or less). COLLECTION OF DELINQUENT ACCOUNTS Past due accounts have a series of messages printed on the student Statements of Account (e-bills) indicating the number of months an account is past due and informing a student they are on Restricted Enrollment status. If an account has not been brought current after three months, the Student Accounts staff attempts to contact the student by telephone to alert them of their past due account. The student is asked to bring their account current or make acceptable payment arrangements. A Final Demand for Payment (Notice of Cure) is sent when an account is four months past due. The debtor is instructed payment, or satisfactory payment arrangements, must be made within 10 calendar days to avoid placement of the account with an outside collection agency. The account is transferred to the collection agency if the debtor hasn't made any arrangements for payment within 30 days of when the Final Demand was dated. Delinquent accounts greater than $20 are sent to an outside collection agency at five months past due unless satisfactory arrangements are made with Student Accounts staff. Accounts placed with collection agencies are monitored and reconciled monthly. Once an account has been placed for collection, it will not be recalled unless it is determined that it was placed in error. Accounts are moved to a second collection agency after one year if payments are not being made on the account. The account will be moved to a third agency after another year, if necessary and will then be recycled to the other collection agencies unless classified as Uncollectible. Collection Agencies can be authorized to litigate delinquent accounts, if necessary and appropriate, to entice the debtor to pay his or her debts. Each collection agency reports the delinquency to credit bureaus.After a minimum of three years of collection with at least three different Collection Agencies, an account may be classified as Uncollectible if none of the Collection Agencies have been able to collect on the account. Uncollectible Accounts are placed in a non-billing status, but all Accounts Receivable Holds remain. Debtors in this category will not be allowed to register for classes or obtain transcripts. At three-year intervals, most uncollectible accounts will be assigned to a collection agency for another attempt at collection.The Family Educational Rights and Privacy Act (FERPA) restricts the Bursar and staff from providing information regarding a student's bill to parents, a spouse, or sibling unless there is a signed release on file. Students who feel that the tuition and fees assessed them or any refund granted for tuition and fees was unjust or improperly calculated may appeal their case to the Tuition Appeals Committee in writing, addressed in care of the Registrar. The student will receive a written response from the Tuition Appeals Committee of its decision. The Director of the Office of Business Operations hears appeals of any decisions made by the Bursar.At Fiscal Year end, the following general ledger adjustments are recorded by the Office of Financial Accounting and Reporting Services:
Last Revision: May 6, 2005 |
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Office of Business Operations • 103 Gilchrist • University of Northern
Iowa
Cedar Falls, Iowa 50614-0008
Phone: 319-273-2162• Fax: 319-273-3009
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Date Updated: September 24, 2008 |
