A large number of public and private schools are now struggling with student debt. This includes both elementary schools and high schools. To minimize accounts receivable, it is important for the schools to have a sound debt collection process in place.
Not all collection agencies can efficiently recover money for schools. An inexperienced debt collector may bring bad PR for the school. Schools have their reputation at stake when they hire a third-party collection agency, therefore collectors have to be amicable, respectful yet firm with their approach.
Proudly Serving Schools Nationwide
For a Cost-effective debt recovery: Contact us
Parents are very sensitive when the matter is related to their kids. When they realize that a professional collection agency is involved in the context of their children they will attempt to clear these past due bills at the earliest.
Most common school debts are related to tuition fees, lunch debt, textbook rentals, laptops, student health, meals and lab fees. Collection agencies should keep their cost low, or offer special packages designed just for schools. Debt collection for public school districts and private schools involves a lot of patience and persistence.
Collection agencies are very effective to collect money from those families who can pay but simply avoid paying their legally due obligation. There is no need to write off your bad debts when a professional collection agency can collect them.
Debt collection methodology for schools is very different from standard recovery methods. Collection agencies cannot use the same aggressive approach which they use for recovering the money for doctors or small businesses.
Although the school debt crisis is happening all over the USA, some school districts of California, Florida, Texas, New York, Pennsylvania, Indiana, Michigan, New Hampshire and Maine are particularly distressed due to the non-payment of the fees by parents. Students’ lunch debt is particularly troublesome for public schools. Colleges have a tuition loan problem.
They should provide a variety of payment options to parents. Agencies should also explain to parents the consequences of late fees. Send communication in multiple forms before the payment due date (email, SMS, messaging, etc.). To minimize accounts receivable, schools themself should adopt a friendly, proactive, and sympathetic approach before forwarding the accounts to a collection agency.
Many parents send their kids to private schools and draw private elementary school loans. Usually, middle-class families take primary school loans to pay for private education if they cannot afford it.
There is a huge difference when a collection agency makes contact with debtors versus when the collection is done under the school’s name. Debtors understand that collection agencies will take many legally compliant actions to recover the debt and they will not quickly back off. Collections must be done in a diplomatic manner; therefore, it is essential to contact the students or their parents with respect to settle overdue accounts.
If you are looking for a good collection agency for schools: Contact us