Colleges reduce fee arrears by making fees clear before term starts, invoicing on time, making payment easy with M-PESA and the admission number as the account number, reminding students regularly and early rather than at exam time, reviewing the arrears list every week, and putting any payment arrangement in writing.
Why arrears build up
Arrears rarely come from one cause. The usual mix is:
- Students and sponsors are not sure what they owe or when.
- Invoices go out late, so the first reminder comes weeks into term.
- Paying is awkward: a long queue at the bank, or an M-PESA payment that never reaches the student's account because the account number was wrong.
- Nobody follows up until exam clearance, when the balance is largest and hardest to pay.
Make fees clear before term starts
Publish a fee structure for every course and intake that shows each item (tuition, examination, registration, accommodation) and when each part is due, for example on admission and per semester. Give it to applicants with the admission letter so the cost is known before they join.
Make paying easy
- Accept M-PESA through your own paybill or till, and use the admission number as the account number, printed on every invoice and statement.
- Match payments to students automatically, so balances are current the moment money arrives.
- Send a payment prompt to the payer's phone when a parent is ready to pay, so they only enter their PIN.
- Let students see their balance and download their statement themselves.
For the finance team's side of this, see our guide to M-PESA fee reconciliation.
Remind early and regularly
A short, polite reminder at the start of the billing stage works better than a stern one at exam time. Good reminders state the balance, the due date, the paybill number and the account number, so the reader can pay straight away. Send them by SMS, which almost everyone reads, and email for sponsors.
Review arrears every week
Set a weekly time for the finance office to look at the arrears list together:
- Sort by balance and start with the largest.
- Check for payments that arrived but were not matched to a student.
- Call or message students and sponsors with large or old balances.
- Note what each one said and when they will pay.
Agree payment plans in writing
Some families cannot pay a whole stage at once. When you agree to accept payment in parts, write down the amounts and dates and give the student a copy. A written plan is easier to follow up and avoids disputes at clearance.
Measure what is working
Track a few numbers each month: the total outstanding, the share of billed fees collected by the due date, and how many students owe more than one stage. If collection by the due date rises after you change reminders or payment options, keep the change; if not, try something else.
Written by the Soma360 team, who build college management software for Kenyan institutions. Spotted something out of date? Tell us and we will correct it.