Business, Management, and Financial

Uncollectable Debt Write-Off

The Accounts Receivable Department at Colby Community College (CCC) is comprised of two distinct areas:

1. Student Receivables-individuals who work toward collecting student tuition and fees.
2. Third Party Receivables-group acts as a collection agency on behalf of CCC.

Student Account Receivables Processes

1. Current-receivables that are less than 90 days old or current payment plan in place – attempting to collect. After one entire semester of attempting to collect in house, the account will be transferred to collection agency and state of Kansas if it is determined that the debtor is a Kansas state resident. 
2. Allowance for Doubtful Accounts-receivables that are greater than 90 days but less than 360 days. During this time frame, the student will be turned into a collections agency.
3. Bad Debt – receivables greater than 360 days, lacking complete payment; requires BOT approval to write-off.

The write-off process will occur twice a year.  The debt will be written off on the following dates December 31 and June 30.  Only accounts in the “Bad Debt” category will be included in the write-off process. 

Below is the detail regarding the write-off process for each receivable category.

Student Receivables

Bad Debt – This entry will be to write-off any Bad Debt Accounts amount that has not been collected.  There will be an entry to the student’s account to pay off the debt, with the description of “write-off” in the Student System.  There will also be a business office hold service indicator placed on the student’s account to prevent registration until the college releases it.

Third Party Receivables

Bad Debt – This entry will be to write-off any Bad Debt Accounts amount that has not been collected.  There will be an entry to the student’s account to pay off the debt, with the description of “write-off” in the Student System.  Additionally, there will be a corresponding entry to the third party account to pay off the debt, with the description of “write-off” in the Student System. 

Also, a business office hold service indicator placed on the student’s account to prevent registration until the college releases it.

*A report of debt to be written off will be provided to the Colby Community College of Trustees before it has been formally written off.

Extenuating Circumstances from the Collections Policy requiring a balance write-off

Colby Community College holds firm that it is the student’s responsibility to pay their student account bill in full each semester. If those bills are not paid, a financial hold is placed on the student account, preventing registration for future classes, release of transcripts, or receiving a diploma.

In rare instances, a balance cannot be sent to collections for varying circumstances and a write-off may be necessary. Below are examples of those instances and how they are handled:

1. 1. When a student does not have a Social Security Number or is not a United States citizen.
      
      • These students cannot be sent to collections and the institution views their balance as “bad debt” when a payment has not been made on the account for two (2) or more years.
      • This balance will be written off, but the student will not have access to transcripts, diplomas, or the ability to enroll at Colby Community College until the balance has been paid in full, regardless of whether it has already been written off or not.
        
        
   2. A balance of less than $100 cannot be sent to collections.
      
      • This balance will be written off when a payment has not been made on the account for approximately one (1) or year.
      • Student will be put on stop for “bad debt” and will not have access to register for classes, previous transcripts, or diplomas until the balance has been paid in full, regardless of whether it has already been written off or not.
        
        
   3. If the Student Accounts Receivable Office internally collects on an account that has already been turned over to collections. A write-off may be necessary for the collection agency fee that is associated with the bill.
      
      
   4. Miscellaneous – A write-off may be necessary when students have paid a third-party vendor for a lab fee and/or book. VPAA may credit account due to course fees not being accurate.

 

[Added June 2016; revised November 2020]