U. to place 2,200 on financial hold

As of tomorrow, students who are in substantial debt to the University for the current or previous terms will be placed on financial hold, Associate Vice President for Finance Frank Claus said earlier this week. About 2,200 students are expected to be placed on financial hold. That number is down slightly from last year, when approximately 2,305 students were placed on hold under the University policy, Claus said. Students placed on financial hold cannot register for the next academic term, obtain academic transcripts or receive degrees from the University. On Sept. 24, all students who were deemed in substantial debt to the University were sent a letter threatening them with financial hold if they did not arrange to repay the University. Financial hold only applies to students who have large outstanding balances for the current and previous semesters that total more than $1,000. Students who owe less money will not be barred from using PARIS, receiving degrees or their getting transcripts. Last year, the University revised its financial hold policy to include money owed by students for the current semester. Before that, Claus said, students could accumulate a debt of up to $25,000 to 30,000 before they were affected by the policy. "[The current policy] forces the students to ask us for help earlier, and we have a lot better chance of helping them if the numbers are lower," Claus said. "Penn is not an inexpensive place to go." According to Director of Student Financial Services William Schilling, SFS may be able to aid students in straightening out their accounts with the University. Schilling said University financial counselors first identify assistance programs available to the students and advise them on how to apply and receive financial aid. If no suitable financial aid program can be found, the Office of Special Accounts will set a schedule for the students and their parents to pay their debt, Schilling added. "For the most part, if students and their families want to do their part, we can usually help them out," he said.

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