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Finance Charges & Late Fees

The Finance Charges & Late Fees section sets the percentage used to calculate finance charges, the fee assessed for overdue balances, as well as whether the system includes previous unpaid finance charges when calculating new finance charges.

Database Location

Selections are saved to the SUBSID_CTL table in the following columns.

Field Name

Database Column

Annual Finance Charge %

FINANCE_CHG

Late Fee

LATE_FEE

Finance Charge on Finance Charge

FIN_CHG_ON_FIN_CHG with one of the following values.

  • 'Y' when checkbox is selected

  • 'N' when checkbox is unselected

How to Update Finance Charges & Late Fees

  1. From the Finance Receivables Administration Hub options, select Subsidiary control. The Subsidiary Control Settings page opens.

  2. Click the Edit button and then click the Finance Charges & Late Fees link at the top of the page to navigate to the section.

  3. Make updates to the following fields or checkboxes as needed.

    • Annual Finance Charge %. The percentage charged against unpaid balances. This is not a monthly fee; this charge is calculated and assessed during the generate finance charges process, which is typically run before statements are generated. Percentages are entered as a whole number. For example, for a 6% charge, enter '6'. If your school doesn't assess finance charges, enter 0.

      Note

      You can also define finance charges for payments plans. When statements are generated, the finance charge defined for the payment plan overrides the finance charge defined in the Subsidiary Control Settings.

    • Late Fee. This is the dollar amount charged against overdue balances. If your school doesn't assess late fees, leave this field blank.

    • Finance Charge on Finance Charge. When this checkbox is selected, the previous finance charge amount is added to the transaction total when the new finance charges are calculated.

  4. Click Save changes.

FAQ

How does the system calculate finance charge amounts?

During the process to generate finance charges, the system uses the following equation:

Finance charge = (Finance charge % / 365.25) X (Period end date - Last statement date) X [Statement balance - (Current payments + Other Credits)]

Can I enter an amount over 100 for the finance charge percent?

Yes, the system allows for percentages over 100 for the Annual Finance Charge %.

Can I enter negative amounts for the late fee?

Negative amounts can be entered in the Late Fee field.