School Debts

The Minnesota Department of Revenue collects school debts referred from the different Minnesota colleges and universities. Once a school debt is referred, the department’s collection costs are added.

School debts include, but are not limited to:  tuition and fees, loans, bookstore charges, library and parking fines, as well as non-sufficient funds (NSF) or “dishonored funds” charges.

Payment of School Debts

School debts can be paid in one of two ways: through a one-time payment in full or through a payment agreement. To make a one-time payment in full, see the payment options Payment in Full section. If the debt is preventing the ability to register for classes or receive a transcript timely, please contact the department to pay in full with secured funds. The department's contact information can be found under the Contact Us section on the right side of this page.

Cancellation of Collection Costs

If one of the following is true, collection costs can be canceled:

• The debtor’s household income for the twelve months prior to the referral is less than 200 percent of the annual federal poverty level. The poverty guidelines can be obtained from the U.S. Department of Health and Human Services’ (HHS) website.​
• Within 60 days of the department's first contact, the debtor establishes reasonable cause for failure to pay the debt.
• The legitimacy or amount of the debt is disputed and payment is made or a payment agreement is entered into within 30 days after resolving the dispute.
• Good faith litigation occurs and debtor's position is substantially justified, and if the debtor does not totally prevail, the debt is paid or a payment agreement is entered into within 30 days after the judgement becomes final.
• Collection costs have been added by the referring agency and are included in the amount of the referred debt.