Collection Procedures for Student Receivables

Please visit Collections, Write-Offs, and Allowance of Accounts Receivables Policy to review the policy. Further questions may be directed to the Bursar’s Office at 501-916-3450.

Prompt collection of student accounts receivables ensures reduced liability and increases cash flow to the University.  The following procedures are for controlling and collecting student debt.

 General collection activity during the semester: 

  • Electronic bills are provided to students on a schedule and generate more often closer to the payment due date. 
  • A late payment fee will be assessed each of the following months after classes start if a student has not paid in full, has not enrolled in an installment payment plan, is in arrears on their installment plan, or does not have enough financial aid to cover the balance owed. (Fall – September, October, and November) (Spring – February, March, and April). 
  •  The University uses a two-prong approach to collect accounts with past due balances – third-party collections and the Individual Income Tax Setoff Program, as described below. 

Collection activity on past due accounts – Collection agencies: 

  • Approximately 60 days after the last day of classes of each Fall and Spring term, students who have not paid their balance in full are sent collection letters informing them that their account is delinquent and must be paid in full within 30 days, or their account will be sent to a collection agency. 
  • Delinquent accounts from the Fall term are submitted to collections in mid-February, and accounts from the Spring and Summer terms are submitted in mid-October.   
  • When the debt, placed with a collection agency, becomes 721 days old, the account will be considered uncollectible if no payment is received from the student.
  • The debt will be considered paid in full, and Student Accounts holds will be removed when the university receives payment from the collection agency.

Collection activity on past due accounts – Debt set-off: 

  • In addition to collection agencies, the University utilizes the State of Arkansas Individual Income Tax Setoff Program (Debt Set-Off). Arkansas Code Annotated §26-36-301 and other state laws establish procedures for the enforcement and collection of fines and other debts assessed by qualified claimant agencies through the setoffs of Individual State Income Tax refunds. 
  • Arkansas Code Annotated § 26-36-309 requires that the claimant agency provide written notice to the debtor whose debt has been certified to the Revenue Division of the Department of Finance and Administration of its intention to capture the debtor’s state tax refund. Debt set-off letters are sent out annually, typically in October, notifying students with past due balances that they have 30 days to either request a hearing protesting the debt’s validity or pay their balance in full. Failure to apply for a hearing during the 30-day period will be deemed a waiver of the opportunity to contest the claim causing final setoff by default.
  • Unresolved accounts are submitted to the State Department of Finance and Administration for debt set-off. 

Abatement of debt: 

  • Each April, all accounts deemed uncollectible will be submitted to the State Department of Finance and Administration requesting approval for abatement.  If approved, the balance is removed from the student’s account, and the account will be flagged with a “Doubtful” hold. The “Doubtful” hold will prevent students from registering and obtaining an official transcript. The hold will be lifted when the student pays the debt in full.