UW-Oshkosh sent these recent grads their diplomas. Then it surprised them with a bill for another $7,900.

Sticker shock set in earlier this summer for a group of seven University of Wisconsin-Oshkosh students who graduated this winter from an executive MBA program and received their diplomas this spring. Then they got a letter from the university’s billing office — in June — informing them of a “discrepancy.”

The students each owed another $7,903.78.

"Almost half a year after we graduate, to get an $8,000 bill, that's a lot," recent graduate Stuart Kuzik said in an interview. "Eight thousand dollars, I don't care who you are, that's a lot of money. That's a big difference in people's lives."

The students’ understanding was that because they applied for graduation and received diplomas, they had paid all bills related to the $59,500 program, five graduates explained in a written letter to the university and in communication with the Milwaukee Journal Sentinel.

“You cannot get the physical diploma until you actually pay your tuition in full. It’s like if you want to graduate from high school, and you took out a library book, you need to return it or pay for it,” Kuzik said.

But a June 1 letter from university bursar Sarah Anderson informed students about a recently completed audit that found they had been undercharged for their final term.

UW-Oshkosh doesn’t have a policy linking graduation or receipt of a diploma to the end of student payments to the university. The university pointed to a financial agreement all students must sign, agreeing to pay all charges assessed by the university and charged to their TitanWeb accounts.

In this case, a “coding error” resulted in students being sent inaccurate billing statements, UW-Oshkosh Chief of Staff Alex Hummel said in a statement. The university notified the graduates “immediately” after discovering the mistake.

“The cost of the (executive MBA) program is clearly communicated with students when they enroll in the program,” Hummel said. “We regret that an error in billing was made, but the error does not change the cost of the program, the amounts owed by the graduates nor UWO’s obligation to recover costs.”

Robert Kelchen, a University of Tennessee, Knoxville, professor who studies higher education finance, said he hadn't heard of a billing situation like this before.

"My gut instinct is that most colleges would just eat the loss on a billing mistake, but UWO is in a challenging financial position," Klechen said in an email.

Earlier this month, UW-Oshkosh announced that an $18 million budget deficit would force the layoffs and retirements of 200 employees this school year.

The billing mistake affected only recent graduates of the executive MBA program, and the university isn't aware of others, UW-Oshkosh spokesperson Peggy Breister said via email.

UW-Oshkosh student noticed previous billing error

Months before receiving the surprise bill, Kuzik had already encountered issues with UW-Oshkosh’s billing system. He contacted the university in January, confused about a negative balance in his financial account that suggested he had overpaid by nearly $4,000.

“When I look at the statement of accounts I don’t see how that number makes any sense,” he wrote to UWO student accounts and three others at the university. “My question is: have all payments for the program been made and/or accepted? Is there anything more I have to do with the financial department at UW Oshkosh?... I want to ensure that I have the program fully paid for and accounted for.”

UW Oshkosh eventually refunded Kuzik $3,715.78. That all happened 4½ months before Kuzik and his peers received the letter informing them of the nearly $8,000 unpaid balance.

"Now they are stating that we owe them money?" Kuzik asked. "What are we to believe? Also, what happens six months or a year from now when they come back and want more money? How long do I have to live waiting for another bill from the university?"

Graduates attempted to contact UW-Oshkosh leadership

Kuzik and four of his peers signed a letter to UW-Oshkosh Chancellor Andrew Leavitt about the unexpected charges.

They said they never received a response. Emails to Andrew Braatz, the university controller, and College of Business Dean Frank Braun, also went unanswered or denied their meeting request, Kuzik said.

In late July, they escalated the situation, contacting UW System President Jay Rothman, U.S. Department of Education Secretary Miguel Cardona and Caryn Beck-Dudley, president and CEO of the Association to Advance Collegiate Schools of Business, which accredits UW-Oshkosh’s business school.

“To date, no one of authority has chosen to acknowledge our attempts to discuss this egregious process, let alone speak with us,” the students' letter said. “This may be a program that is accredited, receiving federal funds, and using the prestigious name of the University of Wisconsin system, but it does not make UW-Oshkosh’s actions professional or ethical.“

Nicole Sment, an assistant for Rothman, responded to the recent graduates on Aug. 7. She said Leavitt or someone on his leadership team would reach out.

That hasn't happened, Kuzik said Friday.

The accrediting body replied, Kuzik said, and is working with the recent graduates to undergo the organization's formal review and complaint process.

Kuzik said he took out loans to pay for his master’s degree. Because he’s no longer a student, he said he's no longer eligible for federal financial aid.

The university agreed to extend repayment over six months through an internal payment plan. If students didn’t set up a payment plan, they had until July 10 to pay the amount in full.

"The billing has been unclear, they made errors, and now they will not communicate with us," Kuzik said, adding, "We're certainly disappointed."

Cleo Krejci covers higher education, vocational training and retraining as a Report For America corps member based at the Milwaukee Journal Sentinel. Contact her at CKrejci@gannett.com. Follow her on Twitter @_CleoKrejci. Support her work with a tax-deductible donation at bit.ly/RFADonation.

Contact Kelly Meyerhofer at kmeyerhofer@gannett.com. Follow her on Twitter at @KellyMeyerhofer.

This article originally appeared on Milwaukee Journal Sentinel: UWO mistake leaves students with big bills months after graduation