Data from a new survey reveals many higher ed institutions are managing past-due accounts for tuition and fees with a total balance in excess of $1 million, and a significant percentage manage an amount that exceeds $5 million.

In the face of ongoing enrollment challenges and even institution closures, continuing to bear such a load of unpaid tuition and fees is not practical or possible for many universities. It’s increasingly critical that institutions find an efficient, effective and student-centric way to earn back valuable tuition dollars while protecting budgets, programs and salaries from cuts. 

To better understand the state of past-due accounts in higher ed, ECSI partnered with Higher Ed Dive’s studioID to survey 150 higher education leaders about unpaid tuition and their accounts receivable policies and processes. This research explores the current state of past-due accounts and what institutions can do to address them more effectively, ultimately supporting students while improving the institution’s financial health.

The survey results reveal several key findings that institutions should be aware of, including:

• Almost two in five (39%) institutions manage past-due accounts for tuition and fees in excess of $1 million, and 33% manage an amount exceeding $5 million.
• Most (82%) survey respondents indicate that their teams spend at least 10% of their time attempting to recover delinquent tuition and fees.
• Six in 10 higher education institutions surveyed do not permit students with an outstanding balance to register for the next term.
• More than half (52%) of higher education officers surveyed say they experienced more delinquent accounts in 2023 than in previous years.
• Only 40% of higher ed officials say general counsels have reviewed their institution’s delinquent account outreach process.

The study highlights the importance of leveraging technology to support staff members in creating compliant policies for outreach and helping students stay enrolled with consistent, preventative communication. 

“When it comes to past-due AR, institutions need to balance their financial stability with a student-centric approach,” says Adam McDonald, president of ECSI. “It’s important to consider what resources you can provide to students who are falling behind on tuition and fees. That’s what we’re focused on because it helps both our clients and their students find success.”

A full report of the survey findings is available for download here.

Survey Methodology

To better understand the state of accounts receivables in higher education, ECSI partnered with Higher Ed Dive to survey 151 representatives in the higher education space in December 2023. The majority of respondents represent private four-year institutions (40%) and public two-year institutions (35%), with some representing public four-year institutions (21%) and private two-year institutions (8%). Institutions ranged in size from 10,000 plus students (43%) to 1,000-2,999 students (29%) and 5,000-9,999 students (15%). There are also participants from schools with 3,000-4,999 students (8%), as well as fewer than 1,000 students (5%).