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Presenters:CARY GEIL

Director of CollectionsNational Credit Management

Jeane OlsonDirector of Student AccountsNorthern Arizona University

Moderator: Karen Reddick

VP Business DevelopmentNational Credit Management

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A four year public university located in Flagstaff, AZ.

26,589 Total enrollment for Fall 2013.19,225 Main campus students.3,567 at 33 distant learning sites.3,797 Online enrollment.35 Personalized Learning.

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Ask Your Legal Counsel

Always consult with your own legal counsel

to ensure you are following not only federal, but also state and local laws.

Legal Advise is tailored to the specific circumstances of each case.

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Where to StartWho are your students?How do you get to know your students?

SurveysPutting Questions on your portalKeeping track of the questions you

are asked

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Communication and

Documentation

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GETTING INFORMATION● Registration (Before Debt Occurs)

- Name- Local Address- Local Phone Numbers- Permanent Address and Phone Number

- Social Security Number- Birth Date- References

* Alternate other than parents* Be aware of info provided including address

and phone numbers* 3-4 references for international students

- Student e-mail address and cell phone number- Spouse Information

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Communication with StudentsPrinted MaterialCall BlastingE-MailTextingNewslettersScreen saversOpen House

OrientationTutorialsPortalSocial MediaTV screensBulletin Boards

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MAKE IT EASY TO CONTACTConcise Statements

Provide Complete Information Contact Person Phone Number Toll Free Number Address Email Website Access to Account Info

Secure PIN Student Email Address Ability to Pay On-Line (single & monthly payments) View Payment History View Account History

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Other Departments

Communicate

Communicate

Communicate

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Financial Terms and Conditions of Attendance

A record of students acknowledgement to the financial terms and conditions of attendance is needed to prove the student has read and understood what their financial responsibilities to the University are.

Beginning Summer 2010, and each term thereafter, students acknowledge the Terms and Conditions.

Students will need to acknowledge the Terms and Conditions only once per term at their initial enrollment.

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Student View

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Terms and Conditions

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DISCLOSURE OF INFORMATIONWays To Disclose Information:

Promissory NotesEntrance/Exit InterviewTruth/Lending StatementsFinancial Aid Award LettersWebsite RegistrationRegistration FormsPayment Plan

Terms of Agreement

Catalogs and Handbooks Policies and Procedures Drop and Add Policy Withdrawal Policy Return of Title IV Funding

Admission Forms

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DISCLOSURE OF INFORMATIONWhat to Disclose:

• Assessing Collection Cost

Late Charges and/or Interest Charges

Drop and Withdrawal Policy

Consequences of Missing Payment

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THE ADDITION OF ANY INTEREST, SERVICES FEES, COLLECTION COSTS OR OTHER EXPENSES INCIDENTIAL TO THE ORIGINAL DEBT IS PERMITTED WHEN “SUCH AMOUNT” IS EXPRESSLY AUTHORIZED BY THE AGREEMENT CREATING THE DEBT OR PERMITTED BY LAW.

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In the event I default on this agreement and it becomes necessary to place this account for collection, I also agree to pay collection fees, not to exceed 40.00% of the original principal balance, plus any court and/or attorney fees resulting from the enforcement of this agreement. Any collection costs stated above are in addition to the principal, fees and interest due on my account.

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As further part of this agreement I also understand, agree and authorize (Name of School) to use my social security number for internal and external credit reporting and collection purposes for all charges incurred against this account for the duration of my enrollment at (Name of School).

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All outstanding tuition account balances are considered qualified educational loans under I.R.C. 221 and are extended with the express understanding that future repayment shall be made to the university. I further understand that my acceptance of these terms represents my acknowledgement and acceptance of my tuition account balance qualifying as a qualified education loan under I.R.C. 221, and as such, its exemption from discharge under the federal bankruptcy code, 11 U.S.C. 523(a) (8).

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If there is a dispute or problem with this agreement then the University will follow the law of the state of (Name of State).

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I understand and agree that should I leave (Name of School) under any circumstance with a balance due, I hereby authorize (Name of School) and/or its agents, including attorneys and/or collection agencies, to contact me via cellular telephone and/or all forms of electronic technology (to include text messaging and e-mail) to collect such outstanding debt, unless I notify such party in writing to cease such communication.

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Things to Think About

Collection Regulations on Campus DebtTruth In Lending Act– as related to Tuition

Payment Plans and non-federal, campus-based loans.

Telephone Consumer Protection Act changes Bankruptcy (private loans/impact)VA/Military Issues

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Where is the Confusion?

Due DatesInvoicesWeb sitePrinted informationOther Departments giving out information

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Is Paying Late Acceptable?

Grace PeriodsHoldsMonitory PenaltiesWithholding Services

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Internal Collections

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STUDENTS VS. NON-STUDENTSIn-House Students

Drop from classes Cut off Meal Plans Putting Holds On Accounts

Non-Students Hold Transcripts Hold on Registrations Report to Credit Bureaus In House Collections Collection Agencies

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DELINQUENT STUDENT ACCOUNTSPast Due Letters

• 30 Day• 60 Day• 90 Day/Final Demand Letter• Follow Through

Effective letters●Create an Urgency3 C’s

Clear Complete Concise

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COLLECTION CALLSOne attempt after each letter sent

Identify Borrower – (Name & Secondary Qualifier if Possible)

Identify YourselfRequest Payment in Full

Psychological Pause…Listen to what the borrower has to say.

Determine ProblemDetermine SolutionClose the DealUpdate the File

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MISSING IN ACTION Skip Tracing - Let the Web Work For You

Free Websites- Google- White Pages- FaceBook- Linked-In- Skip Ease

Paid Websites- Accurint- Merlin Data

Credit Bureaus- Experian- Trans Union- Equifax

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PLACING WITH AGENCIESTOOLS TO HELP IN COLLECTIONS

Place at 90 - 120 DaysCollection CostReporting to Credit Bureaus (Up to 7 years)LitigateKnow the statute of limitations – Be aware of time

barred debt.

Provide all information available Prom Notes Registration Forms Reference Sheets Web Registration Admission Forms

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PLACING WITH AGENCY /3rd PARTY COLLECTIONS

Electronic Secure WebsiteEmail Excel FileWebfolderFTPBilling Service

ManualPrint ScreensPlacement Forms

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INFO NEEDED WHEN PLACING ACCOUNTSRequired Information

Name Phone Number Address Social Security Number Delinquency Date

Required by FCRA to report to Credit BureausAdditional Helpful Information

Date of Birth Balance Breakdown

Principal Late Charges/Collection Cost Interest

Place of Employment References Date of Last Payment Break Down of Charges Co-Signers Information

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COLLECTION AGENCY ACTIVITYInitial Collection LettersLexisNexisNational Change of Address

DatabaseWaterfall PhonesCredit Bureau ReportingDialer ActivitySkip Tracing

InternetCBRLexisNexis

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COLLECTION AGENCY ACTIVITY(Continued)

Phone ContactsVerify Information - Validation of

DebtDebt Resolution

● BIF● Consolidation (Perkins)● Settlement – If Applicable● Flexible Payment Plans● TEP● PPA●Ability to Pay

●Make Decision

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CREDIT REPORTING

45 DAYS3 MAIN CREDIT BUREAUS

EXPERIAN EQUIFAX TRANS UNION

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CONTACT INFORMATION

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Cary Geil1-800-627-2300, 230

cgeil@ncmstl.lcom

Jeane Olson928-523-6074

Jeane.olson@nau.edu

Karen Reddick314-603-9500

kreddick@ncmstl.com