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Bad Debt Letters

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Bad Debt Letters
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Bad Debt Letters document sample

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1/19/2012
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Texas A&M University-Commerce

Fiscal Office

_____________________________________________________________________________________

Aging Accounts Receivable

Student Account Receivable

1. Student receivable includes tuition, fees and housing for the current and prior fiscal year.



2. The student receivable for tuition, fees and housing is semester specific.



3. The student receivable account will be aged according to the following:

The student receivable for tuition, fees and housing will be adjusted prior to the

beginning of each fall term. Receivables will be carried for two years. An allowance

for bad debts will be determined at 50 per cent of the prior year receivable.

Tuition, fee and housing balances from terms older than two years will be removed

from the student receivable and posted to a bad debt account on the student information

system.



4. A student with a past due balance will be restricted from university privileges. A

delinquent balance will prevent a student from registering for additional terms. A

certified transcript will be withheld until a student’s debt has been cleared.



5. Students owing delinquent tuition, fees and housing are notified with three letters

requesting a formalized payment schedule before being sent to a collection agency.



Loan Account Receivable

1. Loan receivable includes tuition loans and emergency loans for the current and prior

fiscal year. A promissory note is required for each loan.



2. The receivable for loans is semester specific.



3. The loan receivable account will be aged according to the following:

The loan receivable will be adjusted prior to the beginning of each fall term.

An allowance for bad debts will be determined at 50 per cent for terms less than one

year.

An allowance for bad debts will be determined at 90 per cent for terms greater than one

year.



4. A student with a past due balance may be restricted from university privileges. A

delinquent balance may prevent a student from registering for additional terms and a

certified transcript may be withheld until a student’s debt has been cleared.



5. Delinquent loans will be sent to collection agencies according to schedules with the

respective agencies.









Account Receivable Procedures

01/19/12-Reprinted


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