Student Accounts Receivable Collections Policy

General Description

Purpose:

In accordance with California State University (CSU) policy requirements, the following documents the California State University, Bakersfield (CSUB) student accounts receivable collections policy.

The policies discussed in this memo are based on the following CSU policies:

1) Accounts Receivable Management ICSUAM 03130.01
2) EO 0145: Delegation of Authority; Withholding of Services from Students for Nonpayment of Debts owed to the College
3) EO 1044: CSU Student Debt Collection Practices.

Definition:

Student Accounts Receivable

Scope:

Students with an outstanding accounts receivable balance.

Policy/Procedure

Financial Holds:

California resident students will be able to enroll each term for up to one College year (Summer, Fall, and Spring) with past due balances. Following the Spring term census, Student Financial Services will place financial holds on unpaid California resident student accounts of $1,000 or more, which will prevent enrollment in any future term.

Non-California resident and international students will not be able to enroll each term with past due balances. Following the Summer, Fall and Spring term census, Student Financial Services will place financial holds on non-California resident and international student accounts of $1,000 or more, which will prevent enrollment in any future term.

Third Party Collections:

Pre-collection efforts will be initiated each term following census for students with account balances of $1,000 or more. Student Financial Services will send notification letters to students of pending third-party collection agency placement. Students will be given the option to enter a payment plan to avoid third-party collection agency action.

Twice annually Student Financial Services will remit any balances of $1,000 or more to a third-party collection agency; in March (for preceding Summer and Fall term balances) and September (for preceding Spring term balances). A mandatory third-party hold will be placed on the student account, which will prevent enrollment in any future term until balances are settled with the collection agency.

California Franchise Tax Board Offset:

Following the fiscal year ending June 30, Student Financial Services will complete the California Franchise Tax Board (FTB) offset procedures for past due balances. All past due student account balances of $10 or more will be remitted to FTB offset. The FTB offset will result in a mandatory hold on the student account and prevent future enrollment until balances are paid.

Payment Plans on Outstanding Balances:

Students who have set-up a payment plan with Student Financial Services and are making regular payments in line with the terms of the agreement will not be sent to third-party collections or FTB offset even if their balance exceeds $1,000.

Review (Frequency and Process)

Any proposed changes to the above Student Accounts Receivable Collections policy must be submitted to the Vice President and Chief Financial Officer for review and recommendation to the President’s Cabinet