www.monash.edu.au

Prepared By: Neville Hiscox

May 2004

Student Debt ManagementStudent Debt Management VersusVersus

Customer-first Service PhilosophyCustomer-first Service Philosophy

www.monash.edu.au2

OverviewOverview

• What is debt management in Student Administration?What is debt management in Student Administration?• Who benefits?Who benefits?• How do we manage fee collection and debt?How do we manage fee collection and debt?• What facilities are there to assist students with the What facilities are there to assist students with the

payment of their fees?payment of their fees?• What is required for a successful debt management What is required for a successful debt management

process?process?• How do you educate stakeholders?How do you educate stakeholders?• Anger management!Anger management!• ConclusionConclusion

www.monash.edu.au3

What is debt management in Student What is debt management in Student Administration?Administration?

• Expediting collection of student feesExpediting collection of student fees

• Reducing the amount of uncollected feesReducing the amount of uncollected fees

Unpaid Fees

?

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2000 2001 2002 2003 2004

www.monash.edu.au4

Who Benefits?Who Benefits?

• FacultiesFaculties– Allows accurate monitoring of load and revenue Allows accurate monitoring of load and revenue

against set targetsagainst set targets

• Central ServicesCentral Services– Accurate DEST submissionsAccurate DEST submissions– Assists university cash flowAssists university cash flow– Assists in meeting revenue forecastsAssists in meeting revenue forecasts

www.monash.edu.au5

Who Benefits?Who Benefits?

• Finance DivisionsFinance Divisions– Financial Resources Management - Less Financial Resources Management - Less

adjustments to fee distributionsadjustments to fee distributions– Corporate Finance – Less write offsCorporate Finance – Less write offs

• StudentsStudents– Equity for all– No unnecessary debt owed to Monash or

deferred to the ATO

www.monash.edu.au6

How do we manage fee collection and How do we manage fee collection and debt?debt?• 0 days: Fees Unit assess and invoices students0 days: Fees Unit assess and invoices students

– Fees Unit (FU) sends hard copy invoice via post and emails Fees Unit (FU) sends hard copy invoice via post and emails students informing them of the ability to view their invoice students informing them of the ability to view their invoice online. Due date 11 days after issue date.online. Due date 11 days after issue date.

• + 12 days: (due date passed) = unpaid fees+ 12 days: (due date passed) = unpaid fees– FU sends students a hard copy Final Notice via mail.FU sends students a hard copy Final Notice via mail.– FU sends student an email informing them of the amount due FU sends student an email informing them of the amount due

and the consequences of non-payment of the overdue fees.and the consequences of non-payment of the overdue fees.

• + 19 days: Unpaid Fees+ 19 days: Unpaid Fees– FU sends students an email informing them of the impending FU sends students an email informing them of the impending

encumbrance.encumbrance.

www.monash.edu.au7

How do we manage fee collection and How do we manage fee collection and debt?debt?• + 22 days: Unpaid Fees+ 22 days: Unpaid Fees

– FU encumbers students.FU encumbers students.– FU sends students a letter via mail informing them of the FU sends students a letter via mail informing them of the

encumbrance and further consequences if their debt with the encumbrance and further consequences if their debt with the university is not extinguished.university is not extinguished.

• + 36 days: Unpaid Fees+ 36 days: Unpaid Fees– FU sends students a letter of Invalidation via mail informing FU sends students a letter of Invalidation via mail informing

them their enrolment is no longer valid and to have their them their enrolment is no longer valid and to have their enrolment reinstated they must first pay a reinstatement feeenrolment reinstated they must first pay a reinstatement fee

– Pre-census, FU discontinues the student from their course Pre-census, FU discontinues the student from their course and units, fees and load are removed.and units, fees and load are removed.

– Post-census FU discontinues the student from their course Post-census FU discontinues the student from their course and units, fees and load remain.and units, fees and load remain.

www.monash.edu.au8

What facilities are there to assist What facilities are there to assist students with the payment of their fees?students with the payment of their fees?

• Fee extension facility for full-fee paying studentsFee extension facility for full-fee paying students

• Final year final semester payment planFinal year final semester payment plan

• Discount for fee paying students who pay for a full years Discount for fee paying students who pay for a full years tuition upfronttuition upfront

• Discount for siblings who are concurrently enrolledDiscount for siblings who are concurrently enrolled

• Management and invoicing of over 120 SponsorsManagement and invoicing of over 120 Sponsors

www.monash.edu.au9

What is required for a successful debt What is required for a successful debt management process?management process?• A robust Student Administration System with a WEB enabled A robust Student Administration System with a WEB enabled

environmentenvironment– CallistaCallista– Online servicesOnline services

• Motivated and informed staffMotivated and informed staff– In the Service CentresIn the Service Centres– In the Fees UnitIn the Fees Unit

• Solid business processesSolid business processes– MethodologyMethodology– Work process instructionsWork process instructions– ReportsReports– Defined timelinesDefined timelines

• Support from senior managementSupport from senior management– Fee PolicyFee Policy

• Systems supportSystems support– Where possible automation of processesWhere possible automation of processes

www.monash.edu.au10

How do you educate stakeholders?How do you educate stakeholders?

• Regular communication with Student Regular communication with Student Service CentresService Centres

• Presentations to facultiesPresentations to faculties• Communication to studentsCommunication to students

– via emailvia email– ask.monash: Monash’s online self-help facilityask.monash: Monash’s online self-help facility– on the webon the web– by mailby mail– presentationspresentations– word of mouthword of mouth

www.monash.edu.au11

Anger Management?Anger Management?

• Communicate the processCommunicate the process

• Introduce a robust appeals processIntroduce a robust appeals process

• Support frontline staffSupport frontline staff

www.monash.edu.au12

ConclusionConclusion

• Debt management when managed effectively Debt management when managed effectively can deliver benefits for all stakeholderscan deliver benefits for all stakeholders

• We believe it is successful at Monash because:We believe it is successful at Monash because:– we treat students as our customerswe treat students as our customers– it is a fair, equitable and transparent process it is a fair, equitable and transparent process – the team of people who administer the the team of people who administer the

methodology take pride in the processmethodology take pride in the process

www.monash.edu.au13

Quality of service depends Quality of service depends on quality of processon quality of process