Best Practices forCampus Based

Collections

Presented by:

Pam Long – Vice President SalesAnn McGough – Regional Director SalesMark Goodman – Educational Service Advisor

At:

Is this how you makeyour collection calls?

Do you want to be a great collector?2April 26, 2013 30th EARMA Conference, Atlantic City, NJ

You can be a great collector if you follow a few easy steps.

• Knowledge of Educational Debt

• Communication Skills• Professionalism• Work Ethic• Persuasion• Active Listening• Problem Solving• Developing Rapport• Multitasking• Keeping a POSITIVE Mental

Attitude3April 26, 2013 30th EARMA Conference, Atlantic City, NJ

Ability to Learn and Apply Procedures

• Understanding and complying with Higher Ed procedures and systems

• Understanding and complying with college/university policies

• Understanding and complying with legal regulations

• Offering solutions that remain within guidelines

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Communication Skills•Expressing information in a clear and confident manner•Speaking in a pleasant tone and volume•Using effective tone inflection•Creating reasonable answers to objections•Solving the problem•Preparing clear and concise summaries•Develop a rapport

Helpful hints: Record yourself for Training

Purposes. Keep a mirror at your desk!

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Professionalism• Treat the student with

respect• Maintaining composure

even when dealing with difficult students/borrowers

• Keeping a positive attitude in spite of negative outcomes

• Maintaining the control of the call by asking questions

• Avoid the use of slang or jargon

• Maintain your professional distance yet be helpful to the debtor

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Work Ethic

1. ____________

2. ____________

3. ____________

4. ____________

5. ____________

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Persuasion

• Effectively responding to objections and disputes

• Being assertive rather than aggressive

• Creating a sense of urgency

• Conveying firm expectations

• Being persistent• Resolving the

delinquency

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Active Listening

• Develop your “7th sense”. (LISTEN)

• Listen attentively to understand the student’s point of view

• Refrain from interrupting• Ask probing questions to

discern the “REAL” facts• Pay attention to subtle clues

like the student’s demeanor and tone inflection

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Adaptability

• Adjusting techniques based on individual circumstances

• Responding appropriately to individual personality types

• Maintaining overall productivity while treating each account call as a separate event

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Problem SolvingUse available tools to accomplish tasks:

• Extended payment plan• Deferment• Forbearance• Rehabilitation• Cancellation• Bankruptcy• Change in circumstance-additional funds• Settlements (non-Perkins)• Explain consequences• Collaborate with supervisor or other staff• ???

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Multitasking

During each conversation:• Talking/Listening• Documenting the call• Managing the pace of the

call• Maintaining attention to

the student• Keeping the student

focused on the solution

Helpful hint: Before each contact, review account history

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Stating the purpose

I am calling today to see if I can help you resolve the $3500 outstanding balance for your student account/loan. Can you pay your balance in full today?

PAUSE…THE NEXT PERSON WHO SPEAKS LOSES.

Alternate of Choice Close

Helpful hint:Always request the balance in full without options and without reservation.

Stating the Purpose

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Objections Become OpportunitiesTypes of Objections:

• Circumstantial• Medical Issues• Loss of Job• Divorce• Natural Disaster• Military Deployment

• Emotional• These students believe that they deserve

the service even though they are not able to afford it.

• Intellectual• These students usually have the ability to

pay but have poor records or do not budget their money accordingly

• Fraudulent• These students never intended to pay.

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Retaining Students Takes Teamwork

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Helpful hint: Retaining Students is NOT a Collection Problem, but a University-wide problem with a University-wide Solution

To Retain Students and Help Them Meet Their Financial Obligations:

• Best Practices = Outreach and teamwork between departments and schools

• Early, very early, contact resolves problems before they become big!

• Cross-department teamwork is the key• Collections, Bursar, Financial Aid, Provost, Advisors, Controller and

Schools working together!

• Maintaining contact with the student• Payment Missed = Contact from Advisor to determine REASON• Help to resolve from the department that can help. • Collection Department is the coordinator.

April 26, 2013 30th EARMA Conference, Atlantic City, NJ

A Typical PlanWeekly Report

from Computer Services

Sorted Report to Provost & Advisors

Advisors make calls to

“HELP”

Reasons Identified

If a “Change in Circumstance”

To SFS (FA) to find

additional funding

(federal or private)

If overlooked or error

Simple remind to pay and give final due date

If Problem

To C&C to set payment plan before semester’s end .. OR

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What Can You Expect? Better working relationships between Departments & Schools Better retention of student’s = revenue for Schools and the

University and Increased Cash Flow in a Slow Economy And For the Student’s Who Do Not Pay:The former student:• Has your contact information• Knew about the debt and who to contact to resolve it

You Have:• Updated contact information• The reason for the delinquency (from online notes)• That traditional financial aid was not an alternative• And can now follow the Collection Steps and employ the tools discussed

earlier.

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Skip TracingUse the Information Highway• Utilize social media (Facebook, LinkedIn,

My Space, Twitter + others?)• Free internet searches (Whitepages.com,

Switchboard.com, Skipease.com, Docusearch.com, + others ?)

• Nearbys (relatives, neighbors, friends)• Exit interview information• Credit bureau report• Fee-based searches (i.e. Accurint

Lexis/Nexus, People Finder, ChoicePoint, others?)

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Questions ?

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Contact us at:

Pam Long 410-836-7465Pam.long@access-receivables.com

Ann McGough 610-724-8657amcgough@access-receivables.com

Mark Goodman 856-577-7703 (Pacific time zone) mgoodman@access-receivables.com