When an organization not owned by you or a family member makes a commitment to pay your educational expenses, they are considered a third-party sponsor by the University of Minnesota. The sponsor is billed by the University for allowed charges on your student account through a payment process called "third-party billing."
Information for students
The University will bill the sponsor for allowed expenses on your behalf. A conditional credit will be placed on your student account for the expenses authorized by the sponsor. You are responsible for paying any charges not covered by the sponsored authorization by the billing due date. To avoid late payment fees and a hold being placed on your account:
- Work with your sponsor to ensure their billing authorization is received by the Third-Party Billing office prior to the first billing due date.
- Confirm your sponsor's funding requirements.
- Determine what the sponsor is committing to pay on your behalf.
- Pay your portion of the bill by the due date.
If payment is not received from your sponsor, or your sponsor notifies us that they will not pay all or a portion of your bill, a hold will be placed on your record, which will prevent registration and the release of transcripts. You will be billed for the unpaid amount.
Third-party billing does not allow for bookstore-related purchases on your U Card. Any bookstore purchase charges posted to your account will be your responsibility to pay.
Please note: If the sponsor requires grade or transcript review before paying, the University will not authorize third-party billing. If your sponsor has this requirement, you must pay the original bill and be reimbursed by your sponsor.
Sponsored billing authorizations must be received by the last day of the term. Authorizations received after the deadline will not be accepted.
If you have more questions or need further information, please contact the Third-Party Billing office at [email protected] or 612-625-8559.
Information for sponsors
As a sponsor, you cannot be related to student beneficiaries. You must satisfy all prior commitments in a timely manner and agree to abide by the Family Educational Rights and Privacy Act of 1974 (FERPA) and not disclose student information to others without the express written approval of the student.
The University of Minnesota's Federal Employer ID Number is 41-6007513.
A written third-party billing authorization must be provided to the Third-Party Billing office on the student’s home campus. It may be a letter on the sponsor organization’s official letterhead, purchase order, or voucher. Any restrictions or contingencies on the authorization are unacceptable. For instance, if you require 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 sponsor.
The authorization should include the following information:
- Sponsored student's name and University of Minnesota student identification number;
- Amount of the sponsorship;
- Type of charges the sponsor will pay, such as tuition, mandatory fees, optional fees, health insurance, on-campus housing, and parking;
- Non-required fees, which are not authorized under the description "fee" and must be listed individually;
- Sponsorship period. If the term(s) or date(s) the authorization is in effect are not indicated, the effective period will be the current term of enrollment. The University does not notify the student or sponsor when authorization expires;
- Sponsor's name and billing address;
- Contact name, phone number, and email address;
- Signature of the sponsor or other person authorized to make commitments on behalf of the sponsor;
- Purchase order numbers, work order authorizations, or other billing codes, if applicable.
Third-party billing does not allow for sponsor authorizations on bookstore-related purchases. Any authorizations regarding bookstore purchases need to be handled by the bookstore.
You may mail or email the authorization document to the Third-Party Billing office.
Submit authorizations to:
Third-Party Billing
University of Minnesota, Twin Cities
160 Williamson Hall, 231 Pillsbury Dr. S.E.
Minneapolis, MN 55455
Phone: 612-625-8559
E-mail: [email protected]
Billing and Payment
Third-party billing invoices are prepared on a separate schedule than student billing, and will be mailed directly to the sponsor. The student will not be able to review or sign bills before they are mailed.
The statement of account provides the student's name, file number, breakdown of charges by fee type, dollar amount, and the number of academic credits attempted that term. If the agency has requested an identifier, authorization, or purchase order number, that number will be on the statement.
Payments are due upon receipt of the billing statement. A late payment fee of $90 will be assessed if payment is not received within 45 days of the bill date. Payments can be made either by a check payable to the University of Minnesota or online as an electronic funds transfer.
Payment by U.S. Postal Service
To ensure that check payments are applied correctly and to avoid giving the students duplicate credit, mail payments to:
Office of Student Finance
Third-Party Billing
Attn: Fiscal Unit
160 Williamson Hall
231 Pillsbury Dr. S.E.
Minneapolis, MN 55455
Electronic funds transfer
Contact the Third-Party Billing office to obtain electronic funds transfer (EFT) bank instructions. Include any information that would help identify the payment in the text portion of the transfer. The customer number, student name, or student ID number of the person expecting the money is particularly helpful.
To ensure proper credit, EFT payment notification is encouraged to be sent via e-mail or U.S. Postal Service to the Third-Party Billing office. Please include the following information:
- Amount due
- Trace number
- Payment transfer date
- Academic term (Fall, Spring, Summer)
- Billing statement number
- Student's name
- Partial payment amount (if a billing statement is not being paid in its entirety.)
Revoking sponsorship
A sponsor may revoke current financial support for any student by sending the University an official notification by mail or e-mail. Revocation does not apply retroactively. Upon notification, the student will be expected to pay all outstanding charges. Until the charges are paid, the student’s account may be subject to late payment sanctions, including an assessment of late payment charges, inability to register for future terms, cancellation from classes, and inability to obtain transcripts.