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- Student Debt Collection
- Non-Student Debt Collection
- Student Debt Collection
- Non-Student Debt Collection
Student Debt Collection
Tuition and fees for all College students are due and payable prior to the beginning of each term. A student’s registration will be subject to cancellation when prior term, past due charges have not been resolved before the current term. Students not paying or deferring current term charges by the due date may be subject to cancellation. Any unpaid balance on a student's account may prevent registration. In addition, transcripts and diplomas may be withheld until outstanding balances are paid.
Students who leave the College with unpaid balances are subject to collection actions. These actions will begin with a letter reminding the student of the unpaid debt and encouraging immediate payment, payment arrangements or other action to resolve the debt and avoid additional actions. If the student fails to respond satisfactorily, a final letter will be sent. Next steps include referral to actions pursuant to the NC State Offset Debt Collection Act (“SODCA”) and the NC State Employee Debt Collection Act (“SEDCA”), when applicable.
Uncollected student debts will NOT be written off and expensed as bad debt except in the case of death of the student.
The President is hereby authorized to develop procedures consistent with this Policy.
Non-Student Debt Collection
Accounts receivable or uncollected billings that may be submitted for collection include, but are not limited to: salary overpayments, contract work completed by the College for which the College has not received payment, fees owed to the College, deposited checks returned unpaid for insufficient funds, and nonpayment for goods or services purchased from the College.
The President is hereby authorized to develop procedures consistent with this Policy.
Student Debt Collection
The following Procedures shall be used for student debt collection:
- As charges become past due, the student will be informed regarding holds impacting future registrations, transcripts, and diplomas. Such holds remain in place until the past due amount is resolved.
- Standard First Letter: A standard first letter is sent to each party notifying them of their indebtedness to the College. They are informed of how the indebtedness occurred (i.e. returned check, etc.) and instructed how and when to settle the balance due. They are given a due date by which to respond.
- Standard Second Letter: A standard second letter is sent, two weeks after the first letter, in a final attempt to reach a resolution with the indebted party. They are given a due date by which to respond. If no response is received, further collection efforts are followed, as described in #4 below.
- A file is submitted to the NC Department of Revenue Set-Off Debt Unit for debts $50.00 and above. This is in accordance with G.S. Chapter 105A of the North Carolina General Statutes, Set-Off Debt Collection Act.
Non-Student Debt Collection
This Procedure shall be used for all College non-student accounts receivable. Accounts receivable or uncollected billings that may be submitted for collection include, but are not limited to: salary overpayments, contract work completed by the College for which the College has not received payment, fees owed to the College, deposited checks returned unpaid for insufficient funds, and nonpayment for goods or services purchased from the College.
- Age of Accounts and Collections of Past Due Billings
Current: An account that is invoiced but not due. For example, an account is invoiced April 1 but not due until April 30. The period from April 1 through April 30 is considered current.
1-30 days past due: In the above example, this period is from May 1 to May 30. The account is considered 30 days past due after May 30. The College will mail the first pastdue letter (demand letter) to the debtor; make phone contact; and receive a promise to pay
31-60 days past due: In the above example, this period is from May 31 to June 29. The account is considered 60 days past due after June 29. The College will mail the second and final demand letter to the debtor and send a confirmation letter for repayment. - Assessment of Late Fees
- If after thirty (30) days, there is no satisfactory response to the letter, the College may apply a one-time late payment penalty fee of ten percent (10%) of the balance due (rounded to the nearest whole dollar).
- Once the College is notified of a returned check, a $25.00 fee (N.C.G.S. § 25-3-506) is applied to the account.
- Collection Techniques.
- Returned Checks
- As charges become past due, a standard first letter is sent to each party notifying them of their indebtedness to the College. They are informed of how the indebtedness occurred (i.e. returned check, etc.) and instructed how and when to settle the balance due. They are given a due date by which to respond.
- A standard second letter is sent, two weeks after the first letter, in a final attempt to reach a resolution with the indebted party. They are given a due date by which to respond. If no response is received, further collection efforts are followed, as described in #3 and #4 below.
- A file is submitted to the NC Department of Revenue Set-Off Debt Unit for debts $50.00 and above.
- Refer the matter to the State Employees Debt Collection Act if necessary.
- If, after sixty (60) days, there is no satisfactory response to the second letter, the College may refer the matter to the North Carolina Department of Revenue pursuant to the Set-off Collection Act and the State Employees Debt Collection Act.
- The College reserves the right to take all appropriate legal action to collect the debt.
- Returned Checks
- Use of Late Fees
Any funds the College accrues as a result of late fees shall be used as follows:- Applied towards any fees incurred by the College for the collection effort;
- Student aid; and/or
- Other expenditures of direct benefit to students.