A huge crowd of students gather outside the accounts department at the University of Technology, St Andrew in this September 2008 Gleaner file photo, the last day for late registration fees to be paid at the institution. - File

The University of Technology (UTech) has more than a quarter of a billion dollars outstanding in uncollected tuition fees, in a growing problem for the institution.

Some $270.5 million of fees remained outstanding according to UTech's 2008 annual report, some $100 million more than the previous year, and representing the greater portion of receivables on its books.

The outstanding fees for 2008 represent just under 25 per cent of the approximate income expected from fees, based upon total fee income collected in 2008.

Income from tuition fees - approximately one third of revenue - amounted to $1.12 billion last year.

In 2007, fees outstanding stood at $185.3 million.

Negative impact

Deryke Smith, chief financial officer of UTech, says the university is exploring ways to mitigate any negative impact on programmes that those funds would help to finance.

"A lot of students have fallen under bad times because of the economic downturn and a lot of parents have lost jobs," he told the Financial Gleaner.

"The management of UTech has created special payment programmes for certain students to facilitate them."

He also noted that the full $270 million was not all due immediately. The master's programmes, he said, are structured with different payment patterns, allowing students to pay over time.

For those who have not been able to pay their fees because of the recession, Smith noted, "We have an interview process in which if the parent proves hardship, the payment period is extended. Otherwise they would not be able to do their examinations. It is a business decision. If they did not take those examinations, they would have to pay for another semester in order to take them again. We do really try to facilitate what is reasonable and what is within our call."

UTech has been progressively increasing tuition fees in significant amounts since 2006 when new students faced an increase of 21 per cent and those already in the system were asked to pay 16 per cent.

The latest increase, which the university states is an attempt to keep up with the higher cost of operations, will be 15 per cent for new students in September 2009 and 10 per cent for current students.

Fee increase

Information on the fee increase was released one week after government expressed its intent to cut its subvention to tertiary institutions by $700 million or 9.0 per cent.

"The university has never experienced a decline in enrolment but we are always conscious of the economic environment in which we operate," said Smith.

The school has seen an increase in enrolment, and is expecting to graduate 2,700 in 2009 compared to 1,820 in 2008.

Other elements of the universities receivables, totalling $581.3 million, include $155.6 million withheld by the Ministry of Education, Youth and Culture to settle amounts due for statutory payroll liabilities of which $103.7 million was owing from 2007.

avia.ustanny@gleanerjm.com