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August 4, 2009

M E M O R A N D U M
 

TO:

CSU Presidents  

FROM:

Charles B. Reed
Chancellor
 

SUBJECT:

CSU Student Debt Collection Practices — Executive Order No. 1044

Attached is a copy of Executive Order No. 1044, relating to the use of third party providers to collect student debt.

In accordance with policy of the California State University, the campus president has the responsibility for implementing executive orders where applicable and for maintaining the campus repository and index for all executive orders.

If you have questions regarding this executive order, please call Dean Kulju, Director of Student Financial Aid Services and Programs, at (562) 951-4737.

CBR/sms

Attachment

cc:

  

CSU Presidents
Executive Staff, Office of the Chancellor
Vice Chancellors
Vice Presidents for Administration
Vice Presidents for Student Affairs

Executive Order 1044
THE CALIFORNIA STATE UNIVERSITY
Office of the Chancellor
401 Golden Shore
Long Beach, California 90802-4210
(562) 951-4726

 

Executive Order:

1044
 

Effective Date:

August 4, 2009

Supersedes:

None

Title:

CSU Student Debt Collection Practices

Under Section III, d, of the Standing Orders, this executive order requires that all third party providers used to collect any student debt are limited to those approved through the Chancellor’s Office selection process. Student debt includes all debt incurred by individuals relating to a current or past CSU program.

Federal law requires the use of third party providers to collect federal student debt. (See Code of Federal Regulations, Title 34, Section 674.45.) There are significant legal and other risks in any debt collection activity. The Chancellor’s Office third party provider selection process permits appropriate oversight to ensure compliance with the law and appropriate business tactics.

A list of the approved providers can be found at the CSU Contract Services & Procurement (CSP) Financial Services page, under the description “Financial Collection Services”: http://redding.calstate.edu/es/csp/storetemplate.cfm?storeid=6.

The list of approved providers will be updated as necessary. Campuses interested in having a provider added to the list should consult with Dean Kulju, Director of Student Financial Aid Services and Programs, at (562) 951-4737.




Charles B. Reed Chancellor