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Education
Business Opportunity
The current, U.S. student population, whether in universities, junior colleges, private, technical training or
other institutions of higher learning, is confronted by the widespread solicitation for sub-prime lending
instruments. Current economic indicators suggest that one-in-ten of these students will file bankruptcy by
the age of thirty.
The Bursar's offices contending with this lending practice must start the tuition collection process while
students are still attending classes, i.e., in early stage delinquency. The student must coordinate tuition
payments with all other loan commitments (NDSL/PERKINS/GSL etc.) or roll past due. Bursars' office performance
has traditionally been measured by after write-off collection performance. Nation wide, institutions of higher
learning report significant liquidation performance after write-off offering irrefutable evidence of failed
collection process.
Operational Shift
The Bursar's Office must recognize this performance opportunity and align its efforts to secure every file possible.
Fusion facilitates this effort by:
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- the creation of collection process for all receivables in one database for all aspects of delinquent student accounts
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- addressing collections while students are in school to ensure the collection message is delivered to the student body
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- the coordination of work flows insuring all federal collection standards for all loan types are fully complied with
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- placing more emphasis on retaining good student relations throughout delinquency versus traditional collection applications
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- the incorporation of a streamlined process that enforces operational diligence in a customized application
Financial Benefits
Fusion coordinates all aspects of collections and forces collectors to comply with educational institutions best
business practices. This coordination results in:
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- direct reductions in tuition write-off (6%-12%)
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- direct decrease in cost to collect per delinquent student account of 10%-20%
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- ability to lower loss reserve commitments and protect new students requiring educational loans by complying with federal guidelines for delinquency performance
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- substantial improvement in "time" to collect, concurrently replenishing needed financial resources.
Business Benefits
In addition to providing significant financial protection for students, educational institutions can expect:
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- all collection efforts, regardless of delinquency age or loan type, to be unified
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- findings, and results, on multiple loan, or tuition, projects will be seamlessly published across secure, web-based interfaces so that multiple departments, and/or organizations can access information thereby avoiding delays and custom requests
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- students will be protected from negative out-side influences by creating specialized training curriculums
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