Doc. T13-091
Passed by the Board of Trustees on September 18, 2013

I. Introduction

This policy will assist the individual student account holder in meeting his or her financial obligation to the University and will also assist the President and the Chancellors in carrying out their fiduciary responsibility to the citizens of the Commonwealth. This policy and its related standards establish guidelines for the timely collection of past due and delinquent student accounts.

This policy applies to all University employees responsible for the administration of this policy. It also applies to any private counsel or private collection agency employed by the University for the purpose of debt collection. Any individual with an outstanding student account balance in the Student Information System at the University of Massachusetts or other system maintained by the University or Campus will be affected by this policy.

II. Policy Statement

A. Principles of Receivables Management

Student accounts shall be administered by each campus according to the following principles of financial management:

  1. Each campus shall have written policies and procedures for the administration of student accounts.
  2. Each campus shall have a system of internal controls for managing the accounts receivable process.
  3. Each campus shall perform a periodic review of past due accounts and prepare an estimate of uncollectable accounts.

Past Due or Delinquent Student Accounts

When a student account is past due or delinquent as defined by the Standards related to this policy, the campus shall place the student account on financial hold status. The Standards to this policy list the administrative actions that will be initiated by each campus. Chief among them is the denial of registration for future semesters.

If the account is not paid in full after administrative actions are taken, the account will be subject to further action as listed in the Standards to this policy. Among other actions, they include referral of the account to the Federal and State Intercept Program for possible tax offsets or other payments made through the Commonwealth’s Accounting System.

B. Financial Reporting

Each campus shall prepare financial reports on student accounts receivable at the end of fall and spring semesters. The specific reports are defined in the Student Accounts Standards.

C. Roles and Responsibilities

  1. President
    The President working in concert with the Campus Chancellors have the fiduciary responsibility for the collection of all funds due the University of Massachusetts.

    The President hereby assigns to the Chancellor or their designee general responsibility for collection of all amounts owed to the University.

    Responsibility for accounts receivable due the President's Office or University Central
    Administrative Services is assigned to the President, and all references to the Chancellors shall be deemed to include the President as regards such accounts receivable.

  2. Chancellors
    It is the responsibility of the Chancellor to implement and administer the provisions of this policy in all areas under his or her jurisdiction.

    At a minimum, the Chancellor shall:

    1. Protect the financial interests of the institution.
    2. Enact and implement financial policies which extend services to students in an equitable and fair manner.
    3. Provide financial assistance programs to students whenever possible to the extent that institutional resources permit.
    4. It is the policy of the University of Massachusetts to institute collection procedures when other payment arrangements are unproductive.
  3. Campus
    It is the responsibility of the campus to:
    1. Provide clear and consistent payment policies in a variety of formats within but not limited to the following venues: schedule of classes, monthly billings, University of Massachusetts catalog, and campus website.
    2. Maintain an accurate and up-to-date student account in the Student Information System.
    3. Attempt to notify the student in writing when their account is past due and/or delinquent.
    4. Attempt to notify the student in writing when significant penalties or fines are assessed.
    5. Attempt to notify the student in writing of impending placement with a collection agency.
  4. Student
    The student account holder shall:
    1. Provide the university with a current address and phone number.
    2. Contact the campus Bursar’s Office (or equivalent office) if he or she will have difficulty meeting any payment deadlines.
    3. Pay for all interest, fines, penalties, and collection costs associated with a past due or delinquent student account.
    4. Pay amount owed, even if the student no longer receives bills from the University.

III. Standards

The President, in consultation with the Chancellors shall formulate, and may amend from time to time, Standards to implement this policy. At their discretion, University campuses and departments may impose more restrictive guidelines for budgetary or control reasons.