MCC Techtrail

6.02.09 – Policy – Financial Management Debt Collection

I. Student Debt Collection

Tuition and fees for all College students are due and payable prior to the beginning of each term. A student’s registration will be subject to cancellation when prior term, past due charges have not been resolved before the current term. Students not paying or deferring current term charges by the due date may be subject to cancellation. Any unpaid balance on a student’s account may prevent registration. In addition, transcripts and diplomas may be withheld until outstanding balances are paid.

Students who leave the College with unpaid balances are subject to collection actions. These actions will begin with a letter reminding the student of the unpaid debt and encouraging immediate payment, payment arrangements or other action to resolve the debt and avoid additional action. If the student fails to respond satisfactorily, a final letter will be sent. Next steps include referral to collection agencies, litigation where appropriate and actions pursuant to the NC State Offset Debt Collection Act (“SODCA”) when applicable.
Uncollected student debts will be written off and expended as bad debt once collection efforts have been exhausted. Writing off the account balance does not relieve the student’s legal obligation to pay the debt. A record of the debt and the related student account holds are maintained along with SODCA and reporting until the debts are paid or collected. If the write-off debt is later collected, then the resulting funds will be recognized as a recovery of the write-off.

The President is hereby authorized to develop procedures consistent with this Policy.

II. Non-Student Debt Collection

Accounts receivable or uncollected billings that may be submitted for collection include, but are not limited to salary over-payments, contract work completed by the College for which the College has not received payment, fees owed to the College, deposited checks returned unpaid for insufficient funds, and nonpayment for goods or services purchased from the College.

The President is hereby authorized to develop procedures consistent with this Policy.

Legal Reference: N.C.G.S. §§ 105A-1; 115D-5; -39

Adopted: January 9, 2019