Written by Zeryn Macklin.
Managing delinquent student accounts is an essential process for the university, ensuring balances are addressed and resolved in a timely manner. Janet Zevallos, collections manager at the cashier’s office, shared insights into how the university handles delinquent accounts, the available repayment options and tools like the Set Off Debt Collection Act (SODCA) that support these efforts.
“Each year, we have to clear the books of old debt,” Janet explained. “Accounts that have been inactive for two to three semesters, typically go through this process.” This process begins in the spring and is completed by June 30, the close of the fiscal year. During this time, the University Cashier’s Office will notify students, for the last time, of their outstanding balances and the consequences of non-payment, such as being sent to collections and losing the ability to register for future semesters.
Before accounts are sent to collections, students have the opportunity to either pay their balance in full or set up an internal repayment plan through MyPack Portal. “Interest continues to accrue on the balance during repayment, but if the debt remains unresolved, the account is transferred to a collection agency after the fall registration period,” Janet noted. Once an account is transferred to collections, the responsibility for repayment shifts to the collection agency, and the university no longer manages those payments.
In addition to the collections process, NC State utilizes the Setoff Debt Collection Act (SODCA) to recover outstanding balances. Janet described SODCA as a tool that helps ensure students are notified about their past due accounts, allowing them to address the debt. This program allows the university to file claims with the NC Department of Revenue, which can intercept state income tax refunds or lottery winnings to offset debt. Any funds received through this process are applied to the student’s balance, with the collection fee retained by the NC Department of Revenue.
Delinquent accounts represent roughly 1% of the student population, and the Cashier’s Office continues to refine strategies to address outstanding balances efficiently.