By Constance Wright, Esquire
It is scary to have an outstanding bill if you do not have the resources to pay it. Many students do not know how to navigate the offices of Student Accounts and Financial Aid to create a plan to move forward. This article is to help students navigate the important offices related to the outstanding bill and provide information about the services each office provides for students. It is important that you educate yourself about the policies and practices that govern billing and financial aid. Although the process can be intimidating, your concerns and questions about your bill are valid and need to be addressed.
Review your bill
If you have an outstanding balance, the first thing you need to do is review your bill for accuracy and to understand the source of each charge. Many students know they have an outstanding bill; however, they are unclear about the amount. If you have a late fee on your account, communicate with the billing office (typically the Office of Student Accounts or Bursar) to ask if they will waive the fee. Some offices will waive the fee if this is the first late payment. Also, be honest with yourself about the source of the unpaid bill and identify the charges that may be avoidable or lowered in the future.
Timeline for payment and consequences
Review your billing office’s website and call the office to identify the immediate deadline for payment. If you have a balance from the previous term and a hold, you need to communicate with the office about the timeline for payment before it is transferred to collections. Ask about minimum payments to avoid late fees and other penalties.
If you have a current bill and attend a school that requires validation, you need to talk to the office about the various ways you can validate your current enrollment and avoid its cancellation. Do not wait to validate your enrollment and risk costly penalties. Communicate with the appropriate office to understand every remedy available to you.
Student Accounts/ Bursar Offices
Your outstanding bill is typically managed by the Office of Student Accounts or the Bursar. You should have a conversation with this office about the possibility of a hold release. A hold release is a temporary release of the hold until the next term begins. A lot of schools will offer students a hold release if they have sufficient financial aid for the next term to cover their outstanding bill. Also, ask about payment plans for outstanding balances. Many schools will make arrangements with you to slowly pay off the bill and avoid a hit to your credit. Develop a relationship with an employee of this office. You need to have an open channel with a person who will help you understand the school’s processes and connect you with other important people who can provide resources.
Financial Aid
You should have an honest and consistent relationship with your financial aid counselor to navigate the costs of college. The process of applying for and receiving federal and institutional aid is complicated and nuanced. You should ask your financial aid counselor to explain the details of your school’s cost of attendance, your financial aid package and your “Effective Family Contribution (EFC).” You need to know the definition of the following terms and how they impact your bill and available resources:
- Direct Costs
- Indirect Costs
- Effective Family Contribution
- Grants
- Private loans
- Direct loans
- Subsidized loans
- Unsubsidized loans
- Work study
You may think the EFC is unrealistic because your family cannot contribute to your education. It is ok. Talk to your financial aid counselor about your direct costs (items actually billed to your account) and what money you will actually owe to your school. You need to understand the process to create a plan to satisfy your bill and budget and refund you may receive from the school.
Next, understand how the multiple sources of aid will be disbursed throughout the school year. If you use part of next term’s aid disbursement to cover an outstanding bill, talk to your financial aid representative about the impact of this decision. Will this create a new bill for this term? Will you have to increase the amount of loan aid you need to borrow this term? How will this issue impact summer school enrollment? ASK THE QUESTIONS!
Changes to your household income
Changes can happen throughout the year that change your family income or your income. You should report important changes like the death of a parent, job loss, a substantial decrease in wages, and other major life changes to the Financial Aid Office. The Financial Aid office has an appeal process for you to submit documentation when changes to your household income occur after your aid package was calculated. Communication is key.
Create a budget
Make a term by term budget to understand how your resources will cover your costs. The internet is full of budget worksheets and apps that will help you budget your money. Break the feast or famine cycle of financial aid disbursements. If you have a substantial disbursement at the beginning of the term and always have a deficit at the end of the term, you need a budget. Plan to manage your spending throughout the term to lower your stress.
Create a plan if you have to take a break
Do not be afraid to create a long-term plan. If you have to take time off, do not just walk away from school. Work with your college adviser, financial aid adviser, and your parents to create a short and long-term plan to finance your education and complete your degree.
Emergencies
Many students create bills because of unexpected emergencies that impact their finances. Communicate with your financial aid representative to identify remedies to help you through the crisis. Also, ask your financial aid or student accounts representatives if there are emergency funds in their offices or other partner offices on campus.
Build relationships with team members from Student Accounts and Financial Aid
Do not manage these high costs alone. You need a team of people dedicated to your success. These professionals can help you plan before challenges occur and when life happens.
College is expensive. Do not navigate the high costs alone. Have a great Winter and Spring term!