FAQ for students

As a student, you will better understand the third party billing process if you read the answers to these frequently asked questions. If you have more questions or need further information, please contact the third party billing office by sending an e-mail to tpbill@umn.edu or calling 612-625-8559.

  1. What do I need to know about third party sponsorships?
  2. How does a sponsorship work?
  3. What is a billing authorization?
  4. How am I billed for the charges not paid by my sponsor?
  5. Can I get a refund if my account shows a credit balance?
  6. I looked at my bill and my sponsor's commitment isn't there. What do I do?
  7. Why are late payment and/or installment/rebilling fees on my bill?
  8. What happens if my sponsor doesn't pay?
  9. Do you send grades or transcripts to my sponsor?
  10. How do my privacy rights relate to my sponsorship?
1. What do I need to know about third party sponsorships?
Find out what your sponsor's requirements are to receive your funds.
Find out what the sponsor commits to pay on your behalf.
You are responsible for paying your portion of the bill by the due date; otherwise, your account will be assessed late payment and installment/rebilling fees.
The University bills the sponsor for sponsored expenses on your behalf.Return to Top
2. How does a sponsorship work?
The sponsor provides a billing authorization that may be a letter, purchase order, or voucher to the third party billing office. Your University student account is credited for the expected amount. This credit prevents late payment fees, installment/rebilling fees, and holds on your account for the sponsored amount.
After the drop/add period, we bill your sponsor on your behalf. ANY restrictions or contingencies on the authorization are unacceptable. For instance, if the agency requires grade or transcript review before paying, the University will not authorize third party billing. In such cases, the student must pay the original bill and be reimbursed by the sponsoring agency.
If the sponsor does not pay your bill, we remove the conditional credit from your account, add any late payment fee assessed to the sponsor, and bill you. Your account may be subject to late and installment/re-billing fees until the charges are paid. An unpaid bill may cause inability to obtain transcripts or register for future terms, cancellation from classes, or similar issues.Return to Top
3. What is a billing authorization?
A billing authorization is a document in which a sponsor commits to pay designated educational expenses for you. The authorization from the sponsor specifies what they will pay, the period of coverage, and billing information.
Sponsors usually send the authorization to us directly, but some sponsors send the authorization to the student. Third Party Billing does not notify the student or sponsor when authorization expires at the end of the term(s) or effective date(s).
The sponsor and student are responsible to ensure that authorization is received before the first student bill due date to avoid late payment and installment/rebilling fees on sponsored charges.Return to Top
4. How am I billed for the charges not paid by my sponsor?
You will notice in your University-assigned e-mail account when your UM Pay bill is ready to be viewed online. Your online statement will detail the amount due (tuition, fees, housing, books, and other campus charges) and the payment due date.Return to Top
5. Can I get a refund if my account shows a credit balance?
If a credit balance shows on your account as the result of a third party billing credit, a refund may be obtained as outlined under refunds and credit balances.Return to Top
6. I looked at my bill and my sponsor's commitment isn't there. What do I do?
To view your current account detail, view your University student account online.
If you do not see your sponsor's commitment on your account, it means we have not received authorization. Contact your sponsor.Return to Top
7. Why are late payment and/or installment/rebilling fees on my bill?
Your sponsor's authorization was not submitted by the due date.
You did not pay your portion of the bill by the due date. Return to Top
8. What happens if my sponsor doesn't pay?
You are legally responsible to pay the full cost of your educational expenses if your sponsor does not pay.
If payment is not received from your sponsor within 90 days of billing, your sponsor is assessed a late payment fee of $90; a notice of nonpayment will be sent to you; and a hold placed on your record that prevents transcript release and registration.
After 120 days of nonpayment, you are billed for the unpaid amount, including the $90 late payment fee. If, at any time, your sponsor notifies us that they will not pay a portion of a bill, you will be billed and a hold placed on your record immediately.Return to Top
9. Do you send grades or transcripts to my sponsor?
The relationship between the sponsors and the University involves billing and payment matters only. You are responsible for providing all other information required by your sponsor. At times, authorizations contain information that is not relevant to billing. We do not follow up on that information. For example, if your sponsor claims that health insurance is provided for you, you are responsible to choose or waive coverage in accordance with University policies and deadlines.Return to Top
10. How do my privacy rights relate to my sponsorship?
Students education records—other than publicly available directory information—are private and shall not be disclosed except as appropriate to the following: Appropriate persons or agencies in connection with a student's application for, or receipt of, financial aid to determine eligibility, amount or conditions of financial aid, and to enforce the terms and conditions of the aid.Return to Top