Collection of Past Due Receivables
Any amount owed to the University including, but not limited to, tuition, fees, room, board, loans, notes receivable, and amounts due for goods and services provided is considered a receivable to the University. A receivable becomes past due if payment is not received by the payment due date. At ninety days past due, the receivable becomes delinquent.
For past due student accounts, the primary collection tool is the placement of a "HOLD" by the Office of the University Bursar on a student's record. This "HOLD" restricts certain student activities such as the ability to add or drop classes, receive grade transcripts, and registration for future academic terms. Once established, the "HOLD" remains in place until the debt is paid in full. If the debt is for tuition, comprehensive fees, room or dining charges, and the balance is not paid by the initial tuition due date of the semester, a student's classes may be purged. Students in danger of this are warned on the Monday following the last day to add classes for the semester that any balance remaining from their Fall or Spring tuition bill must be paid by the coming Friday or they will be dropped from all class rolls. Students so purged must make payment in full, enroll in the Budget Tuition Plan, or arrange for financial aid before their classes will be reinstated. Students will be required to contact their academic dean's office to request classes be reinstated for the semester after payment has been made and the financial purge "hold" has been removed from their record by the Bursar's Office. The financial purge process does not occur during the summer terms. Students enrolling in either of the summer terms must withdraw if not planning to attend; otherwise charges will be due and the student may receive failing grades for the courses.
Students who have applied for graduation and have a balance on their student account may have their diploma held until their account is paid.
Once a student is no longer enrolled, the collection procedures utilized for other "non-student" receivables are implemented. On each month's statement, a dunning message, related to the number of days past due alerts the customer to the next collection steps which will be taken (see Dunning Messages). If payment is not forthcoming within the stated period, the account and all pertinent information are forwarded to an outside collection agency or the Office of the Attorney General, as appropriate, for collection. In the event the collection agency is unable to collect, the account is reported to a national credit bureau, thus affecting the debtor's credit rating.
In addition to the above measures, the University also lists the account with the Virginia Department of Taxation for set-off debt collection procedures. This means that any refund from the state due the debtor will be reduced by the amount of the receivable owed by the debtor.
Individuals who do not pay all fees and charges owed are responsible, in the event of their default or the return of a check for payment of said fees and charges, to pay a penalty fee, to pay interest at the highest rate allowed by law, and for all reasonable administrative costs, collections costs, and attorney's fees incurred in the collection of funds due the University.
Addresses must be kept current in the Student Records System in order for the University to send statements in a timely manner. Students, faculty and staff can change their address on the Hokie SPA. Non-receipt of statements is not a valid defense for non-payment; it is the responsibility of the individual who has incurred the debt to see that the debt is discharged.
Virginia Tech is in full compliance with the Virginia Debt Collection Act and all regulations promulgated by the State of Virginia Department of Accounts and the Office of the Attorney General.