If any person, including faculty, staff, student, or former student, is indebted to the institution for an outstanding overdue debt, the institution need not provide any further services of any kind to such individual, including but not limited to transmitting files, records, transcripts or other services which have been requested by any such person. The institution also reserves the right to off set any funds received from an individual against an outstanding overdue debt.

Upon receipt of such a request for services where there is an outstanding debt due the institution from that person, the institution shall notify the person, in writing, that the services will not be provided since there is an outstanding debt due the institution, and further that until that debt is satisfied, no such services will be provided the individual. When the institution exercises its right of off set, the institution shall notify the person, in writing, of the amount applied and balance due, if any.

The notification referred to above shall also inform the individual that he has a right to a hearing before a person designated by the president of the institution if he believes the records of the institution are incorrect concerning his indebtedness. The notification shall also indicate that the request for the hearing must be made within ten days from the date of the notification.

Upon receipt of a timely request for a hearing, the person designated by the president shall have the records and files of the institution available for review and, at that time, shall hold an informal hearing concerning whether the individual owes or owed any outstanding debts to the institution. After the informal hearing, a decision shall be rendered by the president's designee indicating whether the institution is correct in withholding services and/or applying off set for the outstanding debt. If the outstanding debt is found to be owed by the individual involved, the off set shall remain applied and/or no further services shall be provided. Notification of this shall be sent to the individual within five days after the hearing. This decision shall constitute an informal proceeding established by the institution pursuant to the Higher Education Administrative Procedure Act as defined in RCW 28B.19.110.