Lessons in collections: 3 actionable strategies to help drive student success

1. Empower students with flexible and supportive payment plans

Flexible payment options and readily available, proactive support are critical if students are to succeed. For instance, Texas A&M University's Assistant Director of Student Business Services, Kathryn Holder, believes payment plans “empower the student to take care of the payment themselves, or have mom or dad back home sign up for the payment plan.” Likewise, the University of Connecticut's Director of Cash Management & University Bursar, Alyse Kwapien, noted the popularity of payment plans with more than double the number of students using them year over year.

Institutions are also moving away from simply penalizing past-due students, focusing instead on ways to better support them with more flexible payment plans. Janet Hicks, Associate Controller at the University of South Florida explained, “I don't want to be the roadblock for a hiccup they're having,” highlighting the importance of supporting students through financial difficulties.

Examples of supportive processes for non-payment include:

• Grace periods: the University of Connecticut delays placing a hold on student accounts for non-payment until day 10, which has reduced student frustration and results in 90% of accounts being paid by that time.
• A “soft” drop: As Texas A&M’s Holder described it, the “soft” drop is an attempt "to get [students] to pay, sign up for payment options. Then, if they still have not paid, we will move to the hard drop.” This policy significantly reduced course drops and “got [students] to take care of their financial responsibilities sooner,” explained Texas A&M’s Director of Student Business Services, Peggy Carey.

3. Invest in tech-driven efficiency to supercharge student success

Technology is transforming collections processes and enhancing student support. Texas A&M University, the University of Connecticut, and the University of South Florida have all streamlined manual processes using Flywire, allowing staff to focus on student support.

In eliminating almost all of the manual processing they previously had to do for 529 checks and international payment plans, Texas A&M achieved a 45% collection rate for past-due accounts, collecting $10.6 million, leading Holder to declare it “a huge game changer." Similarly, USF’s Hicks reported that by using Flywire’s collection management to drive automation, the number of accounts they send to collection agencies has reduced by over 50%, saving time and money for the institution and students alike.

Forward-thinking institutions are employing innovative strategies, supportive processes, and technology to reimagine payment and collection methods. In doing so, universities and colleges are significantly improving efficiency, reducing costs, and, most importantly, fostering a supportive environment where students can thrive financially and academically.