The institutions shall handle their own uncollectible student loans with settlements carried out through statutory procedures.
- The transfer of uncollectible accounts shall be approved by the president of the institution involved and a report of this action shall be sent to the Board Offices.
- Any changes in current policies, or new polices, are to be docketed by the chief business officer for board action.
Board of Regents, November 10-12, 1966;
January 12-13, 1967; June 28-30, 1967
Procedure for writing off uncollectible student loans:
- Loans judged to be uncollectible will be written off each year toward the close of the fiscal year. The loans to be written off will be itemized in detail and the original copy of the list will be approved by the business manager and filed. A copy of the list will be furnished to the representative from the state auditor's office.
- No funded reserve for bad loans will be maintained. The full amount of the loans to be written off will be charged directly against the appropriate loan fund by general journal entry.
- The "hold" placed against the loanee's student records when the loan became delinquent will not be released until the loan has been repaid even though the loan has been written off.
- If a loan previously written off should be repaid, the loan will be reinstated by general journal entry and the payment then credited in the customary manner.