New student debt policy to go into effect winter 2009

Exceeding $2,200 in debt will bar students from registering for classes in the next term

By: Jeremy Hansen

Posted: 5/20/08

When registering for winter term in 2009, some students might find that their ability to sign up for classes has been revoked. Due to a change in the Student Debt Management policy, students with outstanding debts above $2,200 or with any outstanding charges from beyond the two most recent terms will not be able to register.

The current policy states that "currently enrolled students pay their account balances down to at least $2200.00 before they can register for the next term," according to the OSU Business Affairs website.

What has changed is that outstanding debt older than two terms will create a registration hold. Up until this change, it didn't matter how old the debts were, just how much they added up to.

The change came about when departments and organizations had to pick up the difference students haven't been paying by raising fees for their programs - making school more costly for students that do pay their debts.

Lissa Perrone, associate director of student finance, wants to make sure that there is no confusion in what is considered debt.

"Financial Aid, such as Stafford Loans and Perkins Loans, do not fall under what needs to be paid back within the two most recent terms in order to register for classes," Perrone said.

The Office of Business Affairs, along with representatives from ASOSU, Student Orientation and Retention, University Housing and Dining Services, the Registrar's Office, Financial Aid and the MU came to this decision by looking at how they currently manage student debt.

"Lots of students leave with accounts, and we send them bills," Perrone said. "If they take a long time to make a payment, we call by phone. If that doesn't work, they have no payment plan and it's been years since they have paid to it, we are forced to send it to an outside collections agency."

The Office of Business Affairs turns to the government for help through other means of collecting money from unpaid debts. "We send the Department of Revenue issues of unpaid debts and they take [the students'] tax refunds to help pay towards what they owe," Perrone said.

Ultimately, it could come down to the current students picking up the slack, through increased fees in many departments on campus.

"Without the money required to pay the departments on campus that are not receiving the money they are owed, some departments are forced to try to increase cash flow. This could mean higher fees for current students," Perrone said.

With this new policy, it could be easier for students to manage their debt, as well as the university itself.

"Students can be kept more current on the status of their account and unforeseen financial issues can be taken care of faster," Perrone said.

It's possible that all students will see the effects of this new policy, come winter term 2009.

Beverly Griffith, a junior in environmental science, agrees with the new policy.

"It isn't fair to the students that do pay their debts on time, that they should suffer, because of the students that don't pay their debts off," Griffith said.

Tamara Larsen, a sophomore in environmental science, also thinks the new policy is a good idea.

"It makes sense," Larsen said. "Students should be held responsible for paying off their debts."

The Office of Business Affairs would appreciate student input on the new policy, as well as ideas for what they need help with.

"We are talking about creating a group of financial awareness, having open training sessions on how to manage debt, as well as presentations at residence halls," Perrone said. "We would really like suggestions on what students need."

If needed, debt counselors are available to students during regular business hours on the first floor of Kerr, at the Student Finance windows.

For more information on the new policies, go to oregonstate.edu/fa/businessaffairs/studentfinance/.

Jeremy Hansen, staff writer

news@dailybarometer.com, 737-2231