Number of Students With Unpaid Tuition Bills Growing

Colleges and universities all across the country are seeing larger numbers of students who may soon be forced to drop out of college due to unpaid bills, according to a recent survey (“Unpaid College Tuition Bills Rise, Survey Finds,” U.S. News & World Report, Jan. 9, 2009).

The American Association of Collegiate Registrars and Admissions Officers found that of the 43 college registrars it surveyed, more than 65 percent said that they’d experienced an increase in unpaid bills over the previous year. At Spelman College in Atlanta, for example, nearly 25 percent of the student body — a record-breaking 500 students — is behind on their bills by an average of $3,000; nearly double the number of students who fell behind last year.

5 Things Cash-Strapped Students Can Do to Stay in School

In order to avoid being kicked out of college, students may take the following five steps to resolve their unpaid tuition bills:

1. Contact the registrar.
   Some schools are willing to work with students to bring their accounts up to date. Schools may offer students an “emergency” loan, or give them the option of using a payment plan that allows a student to pay off the total amount they owe in small payments over a period of time.


2. Stop by the financial aid office.
   There may be several school-sponsored scholarships available to students that schools didn’t offer before. To help students affected by the recession, some schools have raised additional funds to expand or create new financial aid programs, although aid may be limited.


3. Complete last year’s FAFSA.
   Students who fill out the Free Application for Federal Student Aid could still retroactively receive college grants and low-cost loans that they would’ve qualified for last year. If nothing else, by filling out the FAFSA now, students may qualify for a federal student loan that could get help them get through the next semester.


4. File a “PJR”
   If a student’s or a family’s financial circumstances have changed, such as a job or income loss, a student may request a PJR, a “professional judgment review,” from their financial aid office. During a PJR, the financial aid office may determine that a student needs more funds for college and could award them emergency or other aid.


5. Try peer-to-peer lending.
   Once all other options are exhausted, students may want to explore borrowing money from extended family members, friends, or even strangers through social lending sites like GreenNote or LendingClub. But students should read the fine print on any loan documents to ensure they understand their rates and terms before borrowing.

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