2. Agenda
• Overview of Community College of Philadelphia (CCP)
– Institutional Profile
• Background and Trends
• Emerging Best Practices
– Pre-Collection Strategies
– Collection Workflow
– Collaborative Partnerships
3. CCP Institutional Profile
• Founded in 1964, CCP is the largest
public, open-admission institution of
higher education in Philadelphia
• Academic Offerings
– Four locations
– 70 degrees and certificates in Business,
Humanities, Health, Liberal Arts, etc…
• Enrollment (13-14)
– 34,337 students taking credit and non-
credit courses
– 28,096 students taking credit courses
– 15,050 full-time equivalent
• Budget
– $131.9 Operating; $11.2 Capital
4. Background
• College Affordability
– Tuition and fees have increased substantially in the past 30
years
– The share of family income to pay for tuition has increased
for most Americans families
• Financial Aid
– Grant Aid has not kept up with tuition increases
– College financing has shifted from grants to loans
– More students at all income levels are borrowing
» Source: National Center for Education Statistics
5. Trends
• Measuring Accounts Receivable
– Unpaid balances are on the rise
– Increased participation in Tuition Payment Plans
• Institutional Debt
– Increased collection placements
– Institutional write-offs doubled from 2010 to 2012
6. NACUBO Student Financial Services Survey
23.9% 26.1% 25.8%
30.6% 31.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2008 2009 2010 2011 2012
Students with Unpaid Balances
as of the End of the Fiscal Year
8. Trends
• In 2013, colleges reported 7.4% of cash equivalent
payments came from Payment Plans
– An increase of 5% when compared to the year before
– At comprehensive institutions, such as SJU, 48.8% of cash
payments are payment plans
• With the rise in Payment Plans, colleges are getting less
money upfront!
– Higher student default risks
– Impacts institutional liquidity
9. Managing Your Receivables
• Industry Best Practices
– Implement a registration drop for non-payment
– Strong collections management
– Implement aggressive A/R policies to control receivables
– Early billing is important. Use multiple methods to reach students
– Foster strong relationships with the Financial Aid Office
– Review processes periodically to identify any A/R weaknesses
10. Pre-Collection Strategies
• Early billing has tremendous benefits
– Students collaborate with Financial Aid
– 3rd Party Vouchers get processed sooner
– Allows for students to budget based on real-expenses
– Promotes use of payment plan
– Keep students engaged (enrollment management)
11. Pre-Collection Strategies (Cont’d)
• Suggestions for Fall & Spring Billing
– Bill students in May for Fall term, pending final tuition rates
– Bill students in early-October for Spring
• If Billing fails, drop students for non-payment
– Use an automatic process with messaging capabilities
– Use a threshold of $200, FA will pay balances under $200.
14. Set Policies
• Manage A/R with Policies
• Bursar Holds
– Create Bursar Hold (block registration, transcript, etc…)
– Set your hold prior to registration
– Set hold at a reasonable amount that does not negatively
affect enrollment
15. Set Policies (Cont’d)
• Payment Plan Management
– Charge an enrollment fee (the end game is full payment)
– Encourage timely payments by assessing late fees
– Charge NSF fees to encourage good payments
– Set payment reminders
– Publicize payment dates in high traffic areas
16. Manage Credit Lines
• Scrutinize Applicants for Credit
– If feasible, do not permit international students to join a
payment plan
– If they default, you have no legal recourse
– Set an appropriate minimum balance to ensure the effort
is worth it
– Prevent other high-risk students from deferring tuition
17. Manage Credit Lines (Cont’d)
• Samples of high risk students:
– A student who has more than three (3) NSFs on his or her
account
– A student with more than one collection agency
placement
– Or a student who paid off a collection bill only after a
substantial amount of time had elapsed.
18. Financial Aid Partnership
• Develop a collaborative relationship
– Met periodically and discuss processes affect your A/R
• Coordinate on things that matter
– Return to Title IV
– Special or late account adjustments
– Bookstore credit
– Authorized Aid
• Partnerships help Lower A/R’s
19. Use Technology
• E-Bills.
• Direct deposit, reduces fraudulent activity which can
affect your A/R.
• Use Auto-Dialer to remind students of past due
payments.
• Utilize portal messages and e-mail blasts.
• Use text messaging to alert students on important
financial matters.
20. Use Collection Agencies Strategically
• Split your placements
– Don’t put all of your eggs in one basket
– Use comparative data to encourage agencies to compete
• Flip your accounts
– Use 9 to 12 months of non-payment activity as your metric
– Encourage agencies to work the accounts
• Keep the FIRE burning! Push agencies to compete for your
business.
21. Resources
• NACUBO Student Financial Services Survey. This is produced
annually. You can purchase a copy directly www.nacubo.org. If
you participate in the survey, the copy is free.
• Join the Bursar-L list serve hosted by University of Virginia and
coordinate with colleagues. Enrollment is FREE.
1. Send your request to SYMPA@Virginia.edu.
2. In the subject line type: subscribe bursar-l
3. Leave the message body blank.
• My Contact information: Leo Freyre, Bursar
lfreyre@ccp.edu or 215.751.8870
