Students with Balances

Students now have the option to set up a payment plan if they owe a prior balance as long as they haven’t been sent to collections.  By setting up a payment plan, this will allow them to be able to register for the upcoming semester.  The payment plan requires them to pay one third down and the remaining will have to be paid in 3 monthly installments.  If for some reason they don’t pay then they will not be able to register for the following semester until all of it has been paid.

College Affordability Act of 2016

Proposed Implementation Plan

Legislation

1.        Students with an unpaid balance of ≤$250 shall be allowed to register if the student settles the balance by the end of the late registration period for the next semester.

2.       Students with an unpaid balance of >$250 shall be allowed to register if the student enters into an installment plan before the end of the late registration period for the current semester.

3.       Montgomery College cannot refer a delinquent student account to the Central Collection Unit (CCU) until the end of the late registration period of the semester after the account became delinquent.

4.       The effective date is July 1, 2016.

Implications to Montgomery College

1.       Montgomery College has “on time” registration.  There is no late registration period.  For purposes of implementing the law, the official class start dates of the Fall, Spring and Summer terms will be used.  Summer I and II will be treated as one term.  The winter term, since it is accelerated, will be treated as part of the spring term.

2.       Currently, cashier holds (CA) are placed on all accounts with a balance due, regardless of the dollar amount of the balance due.  Once the balance due has been satisfied, the CA hold is removed systematically.  The cashier hold prevents registration, enrollment verification, transcript services, graduation, and viewing grades.

3.       Montgomery College permits students to register with a balance due on an exception basis.

4.       Montgomery College does not refer accounts to CCU until a following semester so #3 above should not have any impact on operations.

Proposed changes to operations

5.       Accounts formerly sent to CCU for collection efforts are not impacted by the legislation.  These accounts are noted with a separate hold called a collection hold (CL).  The CL hold will prevent registration, enrollment verification, transcript services, graduation, and viewing grades.  The CL hold is necessary to manage the accounts with CCU.  Accounts must be satisfied in full before services are rendered. 

6.       For students with an unpaid balance of ≤$250, the CA hold will remain on the account, however, it will not prevent registration.  It will still continue to block enrollment verifications, transcript services, graduation, and viewing grades.

7.       For students with balances of >$250, a different hold category will be used; a delinquent account hold (DA).  The DA hold will prevent registration, enrollment verification, transcript services, graduation, and viewing grades.  In order for these students to register, they will have to enter into an installment plan in TouchNet for a past due balance.  These installment plans will be separate from any installment plan the student may enter for current semester charges. These plans will offer 3 installments with the first installment due upon signing followed by two installments.  The installments will be deducted from a student’s designated bank account or credit/debit card.  Students have to pay these installments timely and in accordance with the agreement.  If not, the DA hold will be placed on the student account again.  Students can access TouchNet through MyMC.

8.       For students that may not have a bank account but have a balance >$250, a self-pay installment plan can be established in TouchNet.  This plan would serve to document the plan and the agreement between the student and the College, however, the student would have to make their own arrangements to make the payments as specified because there would be no bank account to draw the funds from.

Examples

A.      Facts:  Debt incurred in term 201720 or Fall 2016.  Debt is ≤$250. 

Debt has to be paid in full by January 23, 2017; the official class start date of the Spring term in order for the student to register for the Spring term without restrictions.  Student would have a CA hold on the account which would not prevent registration but would block other services as described above.

B.      Facts:   Debt incurred in term 201720 or Fall 2016.  Debt is $500 which is >$250.

Student has to enter into an installment plan for a past due balance by January 23, 2017; the official class start date of the spring term.  One third of the balance due will be paid upon executing the installment agreement and the remaining installments will be February and March of 2017.  DA hold will be removed to allow this student to enter into the installment plan and register.