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Third Party Billing FAQS

Student Information | Sponsorship Information

Student Information

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.
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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.
After the drop/add period, we bill your sponsor on your behalf. Please note, 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, 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.
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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.
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Are bookstore purchases covered under third party authorizations?
The third party billing office does not handle bookstore related purchases, any authorizations regarding bookstore purchases needs to be handled by the bookstore. Any bookstore purchase charges to student’s accounts using the U Card will be the student’s responsibility to pay.
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How am I billed for the charges not paid by my sponsor?
You will receive notice in your University-assigned e-mail account when your 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. 
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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 after reviewed by the financial aid office.
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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.
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Why are late payment and/or installment/rebilling fees on my bill?
Your sponsor's authorization was not submitted by the due date. 
OR
You did not pay your portion of the bill by the due date.
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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. 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.
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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.
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Sponsorship Information

What does the University require of third party sponsors?
The sponsor cannot be related to student beneficiaries.
The sponsor sends a billing authorization to notify the third party billing office of all currently-sponsored students and any changes affecting their commitments.

The sponsor must satisfy all prior commitments in a timely manner.
The sponsor agrees 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.
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What is a third party authorization?
A third party authorization may be a letter on official letterhead, purchase order, or voucher. 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.

The authorization should include the following information:
  • sponsored student's name and 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, 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. The University does not notify the student or sponsor when authorization expires;
  • sponsor's name and billing address;
  • contact name, phone number, and e-mail 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.
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When does the sponsor send the third party authorization?
Both the agency and student are responsible to ensure the authorization is received before the first student bill due date to avoid late payment and installment/rebilling fees on sponsored charges.
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Where does the sponsor send the third party authorization?
You may mail, fax, or bring the authorization document to the third party billing office. If the original authorization/voucher must accompany the billing statement, the option to fax cannot be used.
Submit authorizations and payments to:
 
Student Accounts Receivable
129 Darland Administration Building
1049 University Dr
Duluth, MN 55812
Phone: 218-726-6795
Fax: 218-726-6291
Email: stars@d.umn.edu
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Are bookstore purchases covered under third party authorizations?
Books must be billed directly from UMD Stores. Third party billing will not bill "Bookstore Purchases" posted to the student's account. Currently, a method does not exist to verify the content of these purchases. Please contact the bookstore directly at 218-726-7286 for inquiries regarding paying for student’s bookstore purchases. Any bookstore purchase charges to student’s accounts using the U Card will be the students responsibility to pay.
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What is the third party billing process?
The process is initiated when the University receives authorization from the sponsor. Upon receipt of the authorization, the student's account is credited conditionally for the expected amount of the sponsor's payment.
The credit on the student's account does not reflect payment from the sponsor. This credit prevents late fees, installment/rebilling fees, and holds on the student's account for sponsored funds.  
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When do sponsors get billed?
Third party billing invoices are prepared after the drop/add period for the term, in order to limit changes that might impact the amount due for tuition and fees. Billing invoices are mailed directly to the sponsoring agency. 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.
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When are payments due?
If payment is not received within 90 days of the billing date, a late payment fee of $90 per student will be assessed; a notice of nonpayment will be sent to the student; and a hold placed on his or her record that prevents transcript release and registration.

After 120 days of nonpayment, the student is billed for the unpaid amount. Any charges that are not paid by the sponsor are billed directly to the student. The student will be charged and a hold placed immediately on his or her records if, at any time, the third party agency notifies the University that they will not pay any portion of a bill.
Payments can be made either by a check made payable to the University of Minnesota Duluth or online as an electronic funds transfer.
Payment by U. S. Postal Service
IMPORTANT! Ensure that check payments are applied correctly and avoid giving the students duplicate credit by mailing payments only to the Third Party Billing address given here:

Student Accounts Receivable
129 Darland Administration Building
1049 University Dr
Duluth, MN 55812

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 Third Party Billing and include the following:
  • amount due
  • trace number
  • payment transfer date (approximately)
  • academic term
  • billing statement number
  • student's name
  • partial payment amount (if a billing statement is not being paid in its entirety.)
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How do sponsors revoke sponsorships?
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 outstanding charges. Until the charges are paid, the student may be subject to late payment sanctions, including assessments of late payment and installment/rebilling charges, inability to register for future terms, cancellation from classes, and inability to obtain transcripts.
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How do sponsors get students' grades, transcripts, and other information in University records?
The student is responsible for providing the sponsor with required information. The sponsor agrees to abide by the Family Educational Rights and Privacy Act of 1974 (FERPA) and not disclose this information to others without the express written approval of the student.
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Is there any other information a sponsor needs to know?
The University of Minnesota's Federal Employer ID Number is 41-6007513
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