7 April 2025
/ Jeffrey K. Bearss
Maximizing Tuition Recovery: Four Steps for Private Schools and Universities
It is often hard to know in advance when a parent or student will not pay their tuition accounts on time. Here are four things you can do to maximize recovery of past due accounts, lower default rates ahead of time, and increase your recovery rates – all from Attorney Jeffrey Bearss!
1. Start With a Thorough Credit Application
You probably already have a comprehensive enrollment application. Take another look at it. Make sure you ask for at least all of the basics:
- Name of parent, spouse, and student
- Addresses and phones for each
- Social Security Numbers for each
- Dates of birth
- Employer information for both parents and student, including names, address, phone, and email addresses
- Name, address, phone of all financial references
- Name, address, phone of all banks and institutions where accounts are held
- Name, address, and phone of adult children, to help locate the parent(s) if they move
- Year, make, model, and VIN number of automobiles/RV’s
- Names of businesses or corporations held or owned
- Run a copy of both parents’ and student’s credit reports
2. Monitor Payments to Catch Deficiencies Early
Watch the accounts and try to catch deficiencies early on. Call and email the parent or the person responsible for the account early on. If you leave three messages and do not get a response, it may be time to call an attorney. The earlier you can get an attorney involved in the process, the better.
Collection agencies are good, but they cannot sue or garnish. Firms like Weltman have an in house collection agency that can collect debts without filing suit. If at that point there is no collection, there is seamless transition within our firm in house to our litigation department for suit by an attorney.
3. Careful Drafting of Tuition Agreements - Closing Loopholes
Draft your tuition agreement so that if any portion of the tuition is more than 30 days late - that this gives you the right to declare the tuition agreement in default, the right to accelerate the entire balance due, and the right to all collection remedies. The longer you wait, the more difficult it will be to collect.
4. Contact an Attorney Early In The Process
If you contact an attorney early in the process, your attorney will have knowledge and methods to increase your recovery rate. Additional calling of parents/guardians without involving an attorney early on typically only prolongs the process with the result of diminishing returns. After you retain an attorney, after the attorney files suit, and after the defendant is served, you can always settle the case at that point if you wish. If you wait too long before suing and simply call/send letters, it just gives the debtor more time to move away, conceal assets, and for their financial position to deteriorate further.
If you establish a standardized set of policies and procedures similar to the above, have them in place and consistently utilize them, you can minimize the likelihood of losses, and increase your recovery rates.
This is only a summary of what can be done to increase your recovery rates. For a complete description of all your collection remedies, please contact a firm like Weltman and we can provide you with detailed information. If you have questions about tuition collections, it can help to discuss the matter with legal counsel.
For further information on this topic or to learn about Weltman’s consumer collections and/or education loan recovery & litigation solutions, please connect with Attorney Jeffrey Bearss at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
