Student financial responsibility agreements help ensure that students understand their obligations and protect institutions from risk of default. NACUBO has updated its advisory report with sample language colleges and universities may want to consider in developing such agreements.
Priority subjects include a promise to pay, collections, and communication. Optional subjects address financial aid, billing, returned payments, withdrawal, privacy rights, and more.
While a May 2018 update addressed various court decisions and changes to case law affecting the ability of a college or university to pass on the cost of third-party collection fees, the August 2018 update makes two additional changes to the model language.
- Attorney fees. The “Collection Agency Fees” section has been updated to allow schools to pass on to students the costs, such as court costs, associated with a lawsuit, if it is filed to recover an outstanding balance.
- Revoking consent to call. The updated agreement clarifies that the provision where a student may revoke his or her consent to be called should be limited to contact via an automatic telephone dialing system, rather than withdrawing consent generally.
Institutions, after consulting with counsel, should strongly consider integrating these two changes in their latest student financial responsibility agreements.
The sample language is available in both PDF and Word format to make it easier for members to use and revise the model language to meet their needs.