Universities sending debt collectors after Covid-affected students

Debts collectors are knocking on students doors to recoup unpaid fees for courses that weren’t completed because of Covid lockdowns.

Universities are sending debt collectors after students whose courses were delayed by Covid.

Victorian tertiary institutions are sending debt collectors after students with incomplete courses and units that continued to rack up outstanding fees during the state’s lockdowns.

Students enrolled in courses with practical components have reported debt collectors appearing at their homes to follow up thousands of dollars in fees for courses that weren’t completed or that were delayed due to Covid restrictions.

While tertiary institutions made the move to remote learning along with primary and secondary schools, courses such as fitness or science degrees still require students to satisfy in-person requirements such as practical examinations and fitness tests.

One parent told the Herald Sun a collector working on behalf of Victoria University came to her property at night, asking why her daughter had not yet paid the $1200 she owed in course fees for her fitness certificate.

She said the collector was following up on outstanding payments for the certificate her daughter, aged in her mid 20s, studied in 2020.

A Victoria University (VU) spokeswoman confirmed external debt collectors had approached a small number of students over outstanding fees, but said the method remained a last resort for collecting overdue payments.

“Victoria University refers students to an external debt collector as a last resort only for longstanding debtors, and only after timely and frequent communications through a range of channels to discuss fee support and options that can assist students who are experiencing financial hardship,” the spokeswoman said.

In 2020 and 2021 at the height of the pandemic in Victoria, institutions forked out millions of dollars worth of loans to struggling students who were left out of pocket by the lockdowns, while 12-month freezes were also placed on all debt collection.

VU spent more than $2.8m covering costs for more than 3300 domestic and international students during that period.

With universities and tertiary institutions now set to return to in-person learning when semester one starts in early March, the moratorium on debt collection would expire.

A Swinburne University spokeswoman said fee collections for the university’s courses continued because while some in-person course components such as placements and assessments were delayed, some by almost a year, they were not cancelled outright.

“While some activities may have been unavoidably delayed, they were not cancelled. As a result, our usual student fee collection processes have continued,” the spokeswoman said.

“We know Covid-19 has increased the financial pressures on some of our students, so we encourage anyone to access support available to eligible domestic and international students, including Swinburne initiatives and government benefits,” she said.

“Swinburne’s focus throughout Covid-19 lockdowns has been on safeguarding our students and making sure they did not miss out on any critical learning activities.”

In early February, Swinburne threatened to use debt collectors to pursue its casual staff after accidentally overpaying them after a cyber attack.

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