Dive Brief:
- Colleges and universities must often perform a delicate dance to resolve outstanding tuition payment from students to avoid alienating the relationship while maintaining good budget practices.
- Some schools have rethought communication practices, collection staff roles and working with students to create payment plans, according to District Administration.
- Other schools are involving administrators in other areas of the institution, encouraging them to have students reach out to the budget office if they are having problems. Creating a student-first culture of collecting payment is also said to be helpful in getting students and families on board with the idea before it impacts a student's academic career.
Dive Insight:
Student loan debt is a persistent problem for many students, amounting to some $1.3 trillion spread out among 44 million people. However, where loans are concerned, delinquent payment can often be referred to collections agencies. Colleges dealing directly with students to pay bills often use collection agencies only as a last resort, preferring to deal directly with students as a relationship-building exercise.
Colleges have good incentive to not alienate students, especially over financial concerns. Students who find themselves frustrated with inflexible payment schedules or demanding schools may not stick around to graduation, lowering retention rates. That matters both for schools and the overall economy, with research showing that students who graduate often pay more in the long run than those who drop out, but achieve higher rates of repayment in the long run. In that vein, some have suggested policymakers step in and provide more incentives to schools that produce graduates capable of paying back loans.