3.12 Student Debts
The institutions shall handle their own uncollectible student loans
with settlements carried out through statutory procedures.
1. 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.
2. 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:
1. 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.
2. 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.
3. 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.
4. 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.
Board of Regents, June 14-16, 1972 | 
