Officials say the problem usually occurs when students drop classes. Ivy Tech's Chief Financial Officer says the college loses about 12-million dollars each year because of student-owed debt. And he says collection agencies only recover around one-million-dollars of that each year.
Most of the money owed is related to federal financial aid owed by students who drop classes, but fail to repay the assistance.
The statewide college has implemented a tax intercept program in an effort to improve those collections.
Other colleges, including Purdue, use similar programs.