A Distinct Step Before Collections NACUBO reported that the average ratio of accounts placed in collections reached 4.5% of current student headcount in fiscal year 2025. (NACUBO, 2026, Table 12) Traditional collections remains an important option for accounts that cannot be resolved through institutional efforts. Pre-collections serves a different moment and a different purpose.
Dimension
Pre-Collections Outreach
Traditional Collections
Before agency placement, while institutional options may remain
After internal resolution efforts have been exhausted
Timing
Resolve the balance while supporting student progress
Primary purpose
Recover debt
Maintains a school connected, service-oriented conversation
Creates a formal creditor and debtor relationship
Student relationship
Can help a current student persist or a former student return
Enrollment is generally no longer the central objective
Enrollment opportunity
Surfaces barriers, questions and process issues
Focuses reporting primarily on collection activity and recovery
Institutional learning
The strongest strategy is not defined by choosing one approach for every account. It establishes a deliberate point at which proactive, student-centered outreach occurs and clear criteria for when unresolved accounts should move to the next stage.
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