1. Since 1960 Presenters: CARY GEIL Director of Collections National Credit Management Jeane Olson Director of Student Accounts Northern Arizona University Moderator: Karen Reddick VP Business Development National Credit Management 1

2. Since 1960 A four year public university located in Flagstaff, AZ. 26,589 Total enrollment for Fall 2013. 19,225 Main campus students. 3,567 at 33 distant learning sites. 3,797 Online enrollment. 35 Personalized Learning. 2

3. Since 1960 Ask Your Legal Counsel Always consult with your own legal counsel to ensure you are following not only federal, but also state and local laws. Legal Advise is tailored to the specific circumstances of each case. 3

4. Since 1960 Where to Start Who are your students? How do you get to know your students? Surveys Putting Questions on your portal Keeping track of the questions you are asked 4

5. Since 1960 Communication and Documentation 5

6. Since 1960 GETTING INFORMATION ● Registration (Before Debt Occurs) - Name - Local Address - Local Phone Numbers - Permanent Address and Phone Number - Social Security Number - Birth Date - References * Alternate other than parents * Be aware of info provided including address and phone numbers * 3-4 references for international students - Student e-mail address and cell phone number - Spouse Information 6

7. Since 1960 Communication with Students Printed Material Call Blasting E-Mail Texting Newsletters Screen savers Open House Orientation Tutorials Portal Social Media TV screens Bulletin Boards 7

8. Since 1960 MAKE IT EASY TO CONTACT Concise Statements Provide Complete Information Contact Person Phone Number Toll Free Number Address Email Website Access to Account Info  Secure PIN  Student Email Address  Ability to Pay On-Line (single & monthly payments)  View Payment History  View Account History 8

9. Since 1960 Other Departments Communicate 9

10. Since 1960 10

11. Since 1960 Financial Terms and Conditions of Attendance A record of students acknowledgement to the financial terms and conditions of attendance is needed to prove the student has read and understood what their financial responsibilities to the University are. Beginning Summer 2010, and each term thereafter, students acknowledge the Terms and Conditions. Students will need to acknowledge the Terms and Conditions only once per term at their initial enrollment. 11

12. Since 1960 When a student initially enrolls via self service, they will be presented with, and must accept, the terms and conditions. The student must click the checkbox to proceed. Once they have done this, the ‘Finish Enrolling’ button will be reactivated, and the student can finish enrolling in the class. Student View 12

13. Since 1960 Terms and Conditions If the student chooses to read the Terms and Conditions they can select the hyperlink and will be presented with the following. Collectors will have access to Terms and Conditions History, located: Student Financials > Collections > Terms and Conditions History 13

14. Since 1960 DISCLOSURE OF INFORMATION Ways To Disclose Information: Promissory Notes Entrance/Exit Interview Truth/Lending Statements Financial Aid Award Letters Website Registration Registration Forms Payment Plan  Terms of Agreement Catalogs and Handbooks  Policies and Procedures  Drop and Add Policy  Withdrawal Policy  Return of Title IV Funding Admission Forms 14

15. Since 1960 DISCLOSURE OF INFORMATION What to Disclose: Assessing Collection Cost  Late Charges and/or Interest Charges  Drop and Withdrawal Policy  Consequences of Missing Payment 15

16. Since 1960 16

17. Since 1960 THE ADDITION OF ANY INTEREST, SERVICES FEES, COLLECTION COSTS OR OTHER EXPENSES INCIDENTIAL TO THE ORIGINAL DEBT IS PERMITTED WHEN “SUCH AMOUNT” IS EXPRESSLY AUTHORIZED BY THE AGREEMENT CREATING THE DEBT OR PERMITTED BY LAW. 17

18. Since 1960 18 In the event I default on this agreement and it becomes necessary to place this account for collection, I also agree to pay collection fees, not to exceed 40.00% of the original principal balance, plus any court and/or attorney fees resulting from the enforcement of this agreement. Any collection costs stated above are in addition to the principal, fees and interest due on my account.

19. Since 1960 19 As further part of this agreement I also understand, agree and authorize (Name of School) to use my social security number for internal and external credit reporting and collection purposes for all charges incurred against this account for the duration of my enrollment at (Name of School).

20. Since 1960 20 All outstanding tuition account balances are considered qualified educational loans under I.R.C. 221 and are extended with the express understanding that future repayment shall be made to the university. I further understand that my acceptance of these terms represents my acknowledgement and acceptance of my tuition account balance qualifying as a qualified education loan under I.R.C. 221, and as such, its exemption from discharge under the federal bankruptcy code, 11 U.S.C. 523(a) (8).

21. Since 1960 21 If there is a dispute or problem with this agreement then the University will follow the law of the state of (Name of State).

22. Since 1960 22 I understand and agree that should I leave (Name of School) under any circumstance with a balance due, I hereby authorize (Name of School) and/or its agents, including attorneys and/or collection agencies, to contact me via cellular telephone and/or all forms of electronic technology (to include text messaging and e-mail) to collect such outstanding debt, unless I notify such party in writing to cease such communication.

23. Since 1960 Things to Think About Collection Regulations on Campus Debt Truth In Lending Act– as related to Tuition Payment Plans and non-federal, campus-based loans. Telephone Consumer Protection Act changes Bankruptcy (private loans/impact) VA/Military Issues 23

24. Since 1960 Where is the Confusion? Due Dates Invoices Web site Printed information Other Departments giving out information 24

25. Since 1960 Is Paying Late Acceptable? Grace Periods Holds Monitory Penalties Withholding Services 25

26. Since 1960 Internal Collections 26

27. Since 1960 STUDENTS VS. NON-STUDENTS In-House Students Drop from classes Cut off Meal Plans Putting Holds On Accounts Non-Students Hold Transcripts Hold on Registrations Report to Credit Bureaus In House Collections Collection Agencies 27

28. Since 1960 DELINQUENT STUDENT ACCOUNTS Past Due Letters 30 Day 60 Day 90 Day/Final Demand Letter Follow Through Effective letters ● Create an Urgency 3 C’s  Clear  Complete  Concise 28

29. Since 1960 COLLECTION CALLS One attempt after each letter sent Identify Borrower – (Name & Secondary Qualifier if Possible) Identify Yourself Request Payment in Full  Psychological Pause…Listen to what the borrower has to say. Determine Problem Determine Solution Close the Deal Update the File 29

30. Since 1960 MISSING IN ACTION Skip Tracing - Let the Web Work For You Free Websites - Google - White Pages - FaceBook - Linked-In - Skip Ease Paid Websites - Accurint - Merlin Data Credit Bureaus - Experian - Trans Union - Equifax 30

31. Since 1960 PLACING WITH AGENCIES TOOLS TO HELP IN COLLECTIONS Place at 90 - 120 Days Collection Cost Reporting to Credit Bureaus (Up to 7 years) Litigate Know the statute of limitations – Be aware of time barred debt. Provide all information available  Prom Notes  Registration Forms  Reference Sheets  Web Registration  Admission Forms 31

32. Since 1960 PLACING WITH AGENCY / 3 rd PARTY COLLECTIONS Electronic Secure Website Email Excel File Webfolder FTP Billing Service Manual Print Screens Placement Forms 32

33. Since 1960 INFO NEEDED WHEN PLACING ACCOUNTS Required Information Name Phone Number Address Social Security Number Delinquency Date  Required by FCRA to report to Credit Bureaus Additional Helpful Information Date of Birth Balance Breakdown  Principal  Late Charges/Collection Cost  Interest Place of Employment References Date of Last Payment Break Down of Charges Co-Signers Information 33

34. Since 1960 COLLECTION AGENCY ACTIVITY Initial Collection Letters LexisNexis National Change of Address Database Waterfall Phones Credit Bureau Reporting Dialer Activity Skip Tracing Internet CBR LexisNexis 34

35. Since 1960 35 COLLECTION AGENCY ACTIVITY (Continued) Phone Contacts Verify Information - Validation of Debt Debt Resolution ● BIF ● Consolidation (Perkins) ● Settlement – If Applicable ● Flexible Payment Plans ● TEP ● PPA ● Ability to Pay ● Make Decision

36. Since 1960 CREDIT REPORTING 45 DAYS 3 MAIN CREDIT BUREAUS EXPERIAN EQUIFAX TRANS UNION 36

37. Since 1960 CONTACT INFORMATION 37 Cary Geil 1-800-627-2300, 230 cgeil@ncmstl.lcom Jeane Olson 928-523-6074 Jeane.olson@nau.edu Karen Reddick 314-603-9500 kreddick@ncmstl.com