Academia’s Unseen Debt Crisis: Recouping Millions in Unpaid Accounts at Universities

Across the U.S., higher education institutions are under pressure to drive higher enrollments or cut budgets to overcome financial challenges. Institutions unable to do one or the other — or either — face the same fate as the 14 non-profit four-year colleges that closed in 2023 alone, and the dozens more since 2016.

But what if there was a way to stabilize an institution’s financial situation while also protecting its ability to attract enrollments with vibrant programs, desirable faculty and supportive financial guidance? Accounts receivables in higher education represents just such an opportunity. According to a recent survey of more than 150 higher education leaders by ECSI and Higher Ed Dive, the majority of institutions are managing past due accounts for tuition and fees in excess of $1 million. A significant percentage of survey respondents manage an amount that exceeds $5 million. Recouping these fees allows institutions to earn back valuable tuition money while also protecting budgets from enrollment-damaging cuts to programs and faculty salaries. 

Fortunately, there are sensitive and supportive ways to educate students about finances and help them continue their education while also recouping tuition dollars from delinquency. This report details five important ways every institution can address accounts receivables more effectively to support students while protecting the institution’s financial health.

About the Research
To better understand the state of accounts receivables in higher education, ECSI partnered with Higher Ed Dive to survey 151 representatives in the higher education space in December 2023. The majority of respondents represent private four year institutions (40%) and public two-year institutions (35%), with some representing public four-year institutions (21%) and private two-year institutions (8%). Institutions ranged  in size from more than 10,000 students (43%) to 1,000-2,999 students (29%) to 5,000-9,999 students (15%). There are also participants with schools with 3,000-4,999 students, as well as fewer than 1,000 students (5%).

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