Some Christian colleges are losing more revenue through uncollected student accounts than they generate from annual tuition increases.
They raise tuition to bring in more revenue while failing to collect money students already owe.
One culprit is an important yet often overlooked office: Student Accounts.
At too many institutions, bills are late, inaccurate, and hard to understand.
Worse, students begin classes without receiving an accurate bill, much less paying what they owe. Weeks later, families still don’t know their balance. Financial aid is being adjusted. Exceptions are made. Payment plans haven’t been established.
Collections start with the institution already behind.
In addition to a cash flow problem, this becomes a major retention problem.
An unexpected balance or unresolved aid issue can prevent a student from registering for the next term. Families unable to get answers may not return.
Getting billing right may be one of the most important retention efforts on campus.
Yet Student Accounts often operates under the radar with little accountability.
The solution starts before a bill is sent.
1. Get financial aid right, early.
Send accurate packages soon enough for families to make informed decisions. Late aid creates billing delays and confusion.
2. Make financial clearance a priority.
Set aggressive KPIs for getting the vast majority of new AND continuing students financially cleared before classes begin. Track progress weekly.
3. Send bills that make sense.
Families should understand what they owe, why, and when it’s due.
4. Make Financial Aid and Student Accounts work as one.
They don’t have to report to the same leader, but they do need to coordinate. Students shouldn’t get different answers from different offices.
5. Train Student Account reps to serve students.
These employees handle sensitive conversations about money and whether students can stay enrolled. Customer service matters as much as technical knowledge.
Presidents and CFOs, can you answer these questions?
➖ When do billing cycles run, and how are they performing?
➖ What percentage of students are financially cleared before classes begin?
➖ How much AR is outstanding, and how quickly is it aging?
➖ How much are we writing off each year?
➖ How many exceptions are being made, and who approves them?
Accounts receivable and retention deserve a higher place on the leadership agenda.
Students deserve better. Uncollected balances can eventually mean higher tuition, budget cuts, or reduced services.
Sometimes the fastest way to improve revenue isn’t to enroll another student. It’s to collect the revenue you’ve already earned and keep the students you’ve already enrolled.
Presidents and CFOs, when was the last time you took a hard look at your billing operations? Before you ask students to pay more, make sure you’re collecting what they already owe.
Need help? Let’s talk.