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Policies and Procedures

Procedure 501.2 – Collecting Past Due Student Accounts

February 16, 2015
Last Updated
January 13, 2017
Responsible University Officer
University Cashier
Responsible Unit
Office of the University Cashier

Procedure Statement

These procedures apply only to University student accounts receivable. For information on other past due accounts, see Procedure 503.1 – Collecting Past Due Accounts Receivable.


Forms and Instructions

Collection Steps:

Enrolled Students:

  • As charges become past due, holds impacting registration, transcripts and diplomas are placed in the ConnectCarolina system. Such holds remain in place until the past due amount is resolved.
  • Additional strategies include sending communications reminding students about holds at least once during Fall and Spring prior to registration opening for the next Spring or Fall term.

No longer Enrolled Students:

  • At least three times per year, past due accounts for no longer enrolled students will be subject to the following actions:
  1. Review by the Collections Team
  2. Mailing of the first past-due letter (demand letter).
  3. If, after 30 days, there is no satisfactory response,
    1. Mailing the second and final demand letter to the debtor.
    2. Applying late fees as described in Procedure 501.3 – Late Payment Fee and Interest.
  4. If, after the next 30 days, there is no satisfactory response,
    1. Beginning to apply interest as described in Procedure 501.4.
    2. Beginning process to refer to the Attorney General as practical,
    3. Beginning process to refer account to one of the collection agencies named in the State’s contract, and
    4. Reviewing for SODCA and SEDCA and begin those processes as applicable. See also Procedure 503.1.

Note: If the student is paying a debt in periodic payments satisfactory to the University, the account may be retained until the account is satisfied.

Bad Debt Write Offs:

  • On a regular basis, the collections team identifies accounts where collection efforts have been exhausted and prepares a list for write off:
  1. The list is submitted to the student systems/accounting team for write off in order to appropriately reflect collectible receivables and recognize the bad debt expense.
  2. The student systems/accounting team reviews the list for accuracy and posts the write off transactions, which create a separate off GL student write off (SWO) receivable list to document the continued existence of the underlying debts.
  3. Student Record Holds and SEDCA/SODCA efforts continue.
  • If the underlying debt is later collected, Recovery of Write Offs revenue is recorded.  In addition, SWO account balance is reduced and any related holds are lifted.


Related Data

In 1979, the State enacted Setoff Debt Collection Act (SODCA – G.S. Chapter 105A) and the State Employees Debt Collection Act (SEDCA – Article 60 of Chapter 143), to facilitate collection of debts owned by an individual to a State Agency.



Jan. 13, 2017 - Addition of Bad Debt Write Off Process.