Managing past-due student accounts is a challenge for many higher education institutions. While addressing overdue payments can feel like an administrative burden, taking a thoughtful and student-centric approach can not only resolve these accounts efficiently, but also enhance students' understanding of their financial responsibilities.

By incorporating best practices for proactive communication and offering tailored payment solutions, institutions can create a supportive environment for students while promoting compliance and consistency.

1. Set Clear Expectations from the Start

One of the most effective ways to reduce past-due accounts is to help students understand their financial commitments from the beginning. Communicate tuition fees, deadlines, and billing policies upfront through emails, websites, and orientation sessions.

Create a standard student financial responsibility agreement that clearly outlines the student's financial commitments and expectations. Ensure that students see and sign the agreement before enrollment and at the beginning of each new term. This helps students understand their obligations and sets the tone for financial accountability throughout their academic journey.

2. Proactively Reach Out Before Accounts Become Past Due

By reaching out to students before their accounts become past due, institutions can avoid the need for urgent and sometimes contentious collections efforts. Send reminder emails and texts about upcoming due dates, and make paying easy. Solutions like TouchNet’s Bill+Payment allow students to check balances, make payments, and schedule future payments.

If a student is struggling with their bills, ensure that they know they can reach out for support. Offering a point of contact who can answer questions or help set up flexible payment options can prevent late payments from becoming overwhelming.

3. Best Practices for Reaching Out When an Account Becomes Past Due

Despite proactive measures, some students will inevitably fall behind. When that happens, it’s essential to handle the outreach process thoughtfully and compliantly.

• Act Promptly: The sooner you address the past-due account, the better. A timely outreach ensures that students are aware of the issue and gives them a chance to resolve it before the situation escalates.
• Maintain Compliance: Ensure that all communications follow applicable regulations, such as privacy laws and CFPB guidance.
• Be Consistent and Transparent: Use a consistent tone and messaging across all outreach efforts, from email reminders to phone calls. Avoid sending confusing or contradictory messages.
• Offer Solutions: Present options for payment, such as payment plans, and ensure students are aware of financial counseling resources if they need help managing their debt.

4. Automate and Streamline Outreach with ECSI’s RecoverySelect

Handling overdue accounts manually is time-consuming and prone to error. To improve both efficiency and effectiveness, institutions can benefit from automated solutions like ECSI’s RecoverySelect.

• Automated Communication: RecoverySelect automates the process of sending out emails, text messages, and letters to students who have overdue accounts, ensuring timely outreach every time.
• Tracking and Reporting: The platform provides real-time tracking of all communication efforts, so administrators can monitor progress and identify which students need further attention.
• Compliance and Consistency: RecoverySelect ensures that all communications comply with federal and state regulations.
• Increase Recoupment and Reduce Costs: By automating routine tasks, institutions can focus more on student engagement and less on administrative tasks, ultimately improving past-due recoupment and reducing costs.

5. Continuous Support and Education

Even after a payment plan is established or an account is brought current, continuous communication and support are essential. Offer continued financial literacy support to help students avoid future financial struggles. Stay in touch with students who are on payment plans, checking in periodically to ensure they are staying on track and addressing any new concerns they may have.

Effectively managing past-due student accounts requires a proactive, compliant, and compassionate approach. By ensuring students understand their financial responsibilities, offering flexible payment solutions, and communicating consistently, institutions can reduce past-due accounts and promote student financial wellness.

ECSI’s RecoverySelect offers a streamlined, automated solution to track outreach, ensuring timely and compliant communication while easing the administrative burden on staff. With the right tools and strategies, institutions can turn overdue accounts into opportunities for student success.