FAQ for sponsors
As a sponsor, you will better understand the University of Minnesota's 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 firstname.lastname@example.org or calling 612-625-8559.
- What does the University require of third party sponsors?
- What is a third party authorization?
- When does the sponsor send the third party authorization?
- Where does the sponsor send the third party authorization?
- What fees cannot be billed to the sponsor?
- What is the third party billing process?
- When do sponsors get billed?
- When are payments due?
- How do sponsors revoke sponsorships?
- What happens when a student withdraws?
- How do sponsors get students' grades, transcripts, and other information in University records?
- Is there any other information a sponsor needs to know?
- 1.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.Return to Top
- 2.What is a third party authorization?
- A third party authorization, which may be a letter on official letterhead, purchase order, or voucher, must be signed by an officer of the organization. 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, bus pass;
- 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.
- 3.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.Return to Top
- 4.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 to:
Third Party Billing, Office of Student FinanceReturn to Top
University of Minnesota, Twin Cities
160 Williamson Hall, 231 Pillsbury Drive S.E.
Minneapolis, MN 55455
- 5.What fees cannot be billed to the sponsor?
- Books must be billed directly from the University of Minnesota Bookstores. 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.Return to Top
- 6.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.Return to Top
- 7.When do sponsors get billed?
- Third party billing statements, referred to as "statement of account," 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 statements 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, Social Security 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.
- The University is prohibited by the Family Educational Rights and Privacy Act of 1974 (FERPA) from releasing class names or descriptions, transcripts, grades, financial aid information, or information about other charges. If such information is required by the sponsoring agency, the student is responsible for providing additional information.Return to Top
- 8.When are payments due?
- Third party billing payment is due by the date indicated on the statement of account.
- 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, including the $90 late payment fee. 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 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 student duplicate credit by mailing payments only to the Third Party Billing address given here:Office of Student Finance
Third Party Billing
Attn: Fiscal Unit
200 Fraser Hall
106 Pleasant Street 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, billing statement number, student name, or student ID number of the person expecting the money is particularly helpful.
- To ensure proper credit, EFT payment notification must 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.)
- 9.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.Return to Top
- 10.What happens when a student withdraws?
- When a sponsored student withdraws before the end of a semester, the sponsor will be billed for sponsored expenses in accordance with the university's withdrawal policy. The withdrawal policy and schedule can be found with the refund and drop/add deadlines.Return to Top
- 11.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.Return to Top
- 12.Is there any other information a sponsor needs to know?
- The University of Minnesota's Federal Employer ID Number is 41-6007513
- You may also find current information on costs and tuition useful.Return to Top