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Third-Party Billing can be utilized when an organization (not owned by the student or student’s family) commits to providing financial assistance for the tuition and/or fees of one or more students.   The University will bill the third-party organization directly for the allowed tuition and/or fees, and a credit will be applied to the student’s account.  Examples of sponsoring organizations that might enter into a Third-Party Billing arrangement include employers, a Diocese, outside scholarship providers that require a bill to remit payment, and government or military agencies. 

At the Â鶹´«Ã½, there are two Third-Party Billing options:

Contract Billing – the student initiates the Third-Party Billing arrangement with St. Thomas and their sponsoring organization.

Partnership Billing – The sponsoring organization partners with a Â鶹´«Ã½ School/College to initiate the Third-Party Billing arrangement, providing for financial support of specified students.

Third-Party Billing arrangements require timely submission of written authorizations from both the students and the sponsoring organizations to work properly.  To avoid potential finance charges on the student account, the Third-Party Billing authorizations must be received prior to the first student bill due date.  Students remain responsible for any charges on their account not covered by the sponsoring organization.

STUDENT CONSENT – REQUIRED FOR ALL THIRD-PARTY BILLING ARRANGEMENTS

The St. Thomas Business Office complies with the Family Education Rights and Privacy Act (FERPA), which requires students to provide written consent to the University in order to release student account and billing information to third parties.   Students must submit a Student Information Release Authorization form naming the sponsoring organization as the designee; without this student consent, St. Thomas is unable to share student account or billing information with the third-party.

DOCUMENTATION

The Contract Billing option is available to students that have a commitment from a third-party sponsoring organization to pay toward their tuition and/or fees.  The student must work with their sponsoring organization to submit the following to the Business Office prior to the first student bill due date:

1. The student must submit a Student Information Release Authorization granting the University permission to share information for billing the designated third-party.
2. The third-party organization must provide written authorization identifying their commitment to pay, which must include the following information:
   1. Student’s Name
   2. Student's St. Thomas ID Number
   3. Term of Eligibility
   4. Dollar Amount and Types of Charges Allowed Under the Arrangement
   5. Complete Billing Address
   6. Name and Phone Number of Organization Contact

The authorization may be in the form of a letter, purchase order, or voucher.  The documentation must be on the organization’s official letterhead and signed by an authorized representative of the organization.  A new authorization form is required for each new term that the student is eligible for the sponsorship.  St. Thomas does not notify the student or agency when the authorization expires at the end of a term.

Forms must be submitted to:

University of St Thomas
Business Office, Mail 5002
2115 Summit Avenue
St. Paul, MN  55105

email – busoffice@stthomas.edu             

Any restrictions or contingencies on the authorization cannot be processed by the Business Office.  For instance, if the third-party organization requires grades or transcripts before payment then St. Thomas cannot facilitate the third-party billing. 

CONTRACT BILLING – INVOICING & PAYMENT

After the St. Thomas Business Office receives the third-party authorization, a credit is entered on the student's account and a charge is entered on the third-party billing account. The credit on the student's account DOES NOT reflect actual payment from the third-party.  Third-party billing statements, titled "Statement of Account/Invoice", are prepared after the add/drop period for the term, in order to limit changes that might impact the amount due for tuition and fees. Monthly statements are mailed directly to the third-party.  After the first statement for each term, subsequent statements reflect any changes to the student's applicable charges. These statements also indicate if a previous balance is unpaid.  If the third-party sponsor fails to pay the billed amounts in full, the unpaid balance will revert back to the student’s account.

Third-party payments must be made within 90 days of the date St. Thomas bills the third-party.  If payment is not received within 60 days, a notice of nonpayment will be sent to the third-party.  If payment is not received within 90 days, a notice of nonpayment will be sent to the third-party and also to the student.  After 120 days of nonpayment, the credit to the student account will be reversed and the student will again be billed for the unpaid amount.  Third-party billing authorizations for future terms will not be accepted from students with an unpaid balance from their third-party.

Third-party payment can be made in the form of a check or an electronic funds transfer:

Check - Make checks payable to the Â鶹´«Ã½. To ensure that check payments are applied correctly and to avoid the student receiving duplicate credit, it is important that payments reference the THIRD- PARTY account number (C000xxxxx), and not the student ID number.

Electronic Funds Transfer - Contact the Business Office to obtain electronic funds transfer bank information. Reference the third-party account number and/or the student’s name when initiating an electronic funds transfer for accurate and timely credit.

DOCUMENTATION

Third-party organizations that collaborate with a St. Thomas department or college to provide financial support for a group of specified students may utilize the Partnership Billing option.   All Third-Party Billing arrangements, including Partnership Billing, require that the students benefiting from the Partnership Billing arrangement provide St. Thomas with a Student Information Release Authorization form, granting the University permission to share billing information with the third-party partnering organization.  Solicitation of the release form will need to be initiated by either the St. Thomas partner department/college or the sponsoring partner organization. 

Partnership Billing requires written authorization from the third-party partnering organization detailing the following information for billing:

1. Each eligible student’s name
2. Student ID numbers (if known)
3. Dollar amount and type of charges that may be billed (tuition and/or fees)
4. Complete billing address
5. Name and phone number of organization contact

All Partnership Billing authorizations must also include the term that the authorization is in effect; a new authorization is required for each term that the students are assistance eligible. The St. Thomas Business Office does not notify the student or sponsoring organization when the authorization expires at the end of the term.

To avoid potential finance charges on the student account, all third-party partnership authorizations must be received before the first student bill is due each semester.

Term Submission Deadlines:              Fall – September 19
                                                       Spring – February 19
                                                       Summer – June 19

Restrictions or contingencies regarding the authorizations cannot be accommodated by the Business Office.  For instance, if the third-party partner requires grades or transcripts for the applicable students as a prerequisite for payment, then the St. Thomas Business Office cannot facilitate the Partnership Billing.  Another example would be if the third-party partner requires the authorized amount for each student be adjusted based upon other aid received, then the St. Thomas Business Office cannot facilitate the Partnership Billing.

Completed forms can be emailed to busoffice@stthomas.edu or mailed to:

Â鶹´«Ã½
Business Office Mail 5002
2115 Summit Ave
St. Paul, MN 55105

 After the St. Thomas Business Office receives the third-party authorization and the signed student information release form, a credit is entered on the student's account for the dollar amount listed on the authorization form. This dollar amount will not be adjusted except for corrections or to reflect related add/drop activity, so it is recommended that the dollar amount shown is an accurate representation of the organization’s intent to pay. The Business Office does not evaluate a student’s financial need; our role is to apply the third-party credit as authorized.

PARTNERSHIP BILLING – INVOICING & PAYMENT

A third-party credit on the student's account DOES NOT reflect actual payment from the partnership organization. Third-party billing statements, titled "Statement of Account/Invoice", are prepared after the add/drop period for the term, in order to limit changes that might impact the amount due for tuition and fees.  Monthly statements are mailed directly to the partnership organization. After the first statement for each term, subsequent statements will reflect any changes to the student's charges. These statements also indicate if a previous balance is unpaid. 

Non-payment of the third-party invoice will nullify the agreement and the third-party credit posted to the students’ accounts will be reversed, leaving the students responsible to pay for all charges. 

Third-party organizations can make payment in the form of a check or an electronic funds transfer:

Check - Make checks payable to the Â鶹´«Ã½. To ensure that check payments are applied correctly it is important that payments reference the THIRD- PARTY account number (C000xxxxx).  Payments should be mailed to:

                Â鶹´«Ã½
                Business Office Mail 5002
                2115 Summit Ave
                St. Paul, MN 55105

Electronic Funds Transfer - Contact the Business Office to obtain electronic funds transfer bank information. Reference the third-party account number when initiating an electronic funds transfer for accurate and timely credit.

Electronically transferred loan funds are applied directly to the student's account.

Paper student loan checks must be endorsed at the Business Office. Students will be notified by email when the check arrives. The student must endorse the loan check before the funds will be credited to the student's account.

Paper PLUS loan checks are mailed directly to the parent for endorsement. They must be returned to the Business Office to be applied to the student's account.

According to federal regulations the Â鶹´«Ã½ is required to have a signed Title IV Federal Financial Aid Student Authorization Form from all students in order to use Title IV federal financial aid funds to pay the student's charges other than tuition, fees, room and board.

Cash payments on your student account are limited to $50.  There are several benefits to reducing the amount of cash on campus including: 

• Improved safety of students and employees
• Improved accountability and internal control
• Reduced resources required for cash handling and management
• Minimize risk and improve transparency of transactions