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Policy 4301

Managing and Collecting Receivables

I. Purpose

The purpose of this policy is to establish a standard for managing receivable balances and collecting University financial obligations.

II. Policy

Longwood University will take all appropriate actions to aggressively collect accounts receivable. Balances owed the University are considered debts of the Commonwealth. The State Comptroller promulgates procedures for the collection of all Commonwealth receivables.

  1. Collection of Student Accounts

    Student account balances must be paid in full or secured to the satisfaction of the Director of Cashiering and Student Accounts prior to the semester due date. Failure to receive a bill does not waive the requirement for payment when due. Students may access account summaries/billing statements via Longwood University's Student Information System. Charges for courses, room/board assignments, or any other charges added after the semester payment due date are due immediately.
    1. An account may be secured in lieu of cash payment through:
      1. Verification by Financial Aid that the student has aid;
      2. Verification in writing from an outside agency that a scholarship, grant or third-party assistance is in progress;
      3. Contract under Longwood's Monthly Payment Plan
    2. The following collection procedures will be implemented in an effort to manage institutional debt:
      1. The University bills approximately one month prior to the fall and spring semester due dates. Additionally, the University bills all registered students weekly throughout the semester and reviews accounts for unsecured balances due. A final billing letter outlining collection procedures will be mailed to the student's permanent address before the end of each semester for all unpaid charges. Students are responsible for updating their permanent address with the Office of the Registrar.
      2. Students with balances due may be subject to course schedule cancellation oradministrative withdrawal from the University. In the event of course schedule cancellation, any student who wishes to be reinstated must pay a reinstatement fee in addition to satisfying all financial obligations. The student's original course schedule may no longer be available. Administrative withdrawal does not waive the student's financial obligation.
      3. Residential students with unpaid balances may be denied access to student housing and meal plans on their scheduled fall move-in day.
      4. Registration and transcript holds will be placed on the student account.
      5. Accounts at least 60 days past due will be sent a final billing letter. Accounts not settled by the due date stated in the final billing letter will be submitted to a collection agency, and collection costs will be added to the account balance. Delinquent accounts may also be reported to the credit bureau. Once an account has been assigned to a collection agency, any additional debt incurred will be added to the collection agency balance.
      6. Unpaid balances will be listed with the Virginia Department of Taxation, which may result in the seizure of funds due the student from the Commonwealth, such as a tax refund or lottery claim. 
      7. Accounts of $3,000 or more may be submitted to the Attorney General for appropriate collection action.
      8. Accounts less than $5 may be written off by the Director of Cashiering and Student Accounts.
      9. No debt may be discharged without appropriate authorization by the Office of the Attorney General.
  2. Collection of Non-Student Accounts

    Non-student account balances must be paid by the billed due date to avoid further collection activity. The following collection procedures will be implemented in an effort to collect delinquent balances:
    1. A billing letter outlining collection procedures will be mailed to the debtor.
    2. Accounts receivable holds will be placed on the account.
    3. Accounts at least 60 days past due will be sent a final billing letter. Accounts not settled by the due date stated in the billing letter will be submitted to a collection agency, and collection costs will be added to the account balance. Delinquent accounts may also be reported to the credit bureau. Once an account has been assigned to a collection agency, any additional debt incurred will be added to the collection agency balance.
    4. Unpaid balances will be listed with the Virginia Department of Taxation, which may result in the seizure of funds due the student from the Commonwealth, such as a tax refund or lottery claim. 
    5. Accounts of $3,000 or more may be submitted to the Attorney General for appropriate collection action.
    6. Accounts less than $5 may be written off by the Director of Cashiering and Student Accounts.
    7. No debt may be discharged without appropriate authorization by the Office of the Attorney General.

Approved by the Board of Visitors May 8, 1981.
Revised and approved by the Board of Visitors, September 7, 2002.
Revised and approved by the Board of Visitors, December 10, 2005.
Revised and approved by the Board of Visitors, March 24, 2007.
Revised and approved by the Board of Visitors, June 15, 2012.
Revised and approved by the Board of Visitors, December 03, 2010.
Revised and approved by the Board of Visitors, September 14, 2012
Revised and approved by the Board of Visitors, March 22, 2013