Student Financial Operations will process deferred third party billing of tuition, fees and other charges to businesses, governments, agencies and organizations desiring to sponsor a student at The University of Michigan.
The billing is processed on a per term basis. A letter or contract must be presented to the University outlining the sponsor’s guarantee to pay. This authorization must not be contingent upon the student receiving a specific grade or upon a financial need status.
It is the policy of the University to protect our student’s right to confidentiality under the Family Educational Rights and Privacy Act (FERPA). Sponsors must obtain information regarding grades, transcripts, course listings or other specific information directly from the student.
Sponsored students are those students that are registered and require the University of Michigan to bill an outside sponsor for their tuition, fees (Registration Fee, School & College Government Fee, Student Legal Services Fee, Michigan Student Assembly Fee,course fees, room/board,International Health Insurace), etc. while they attend the University. A letter of authorization is required from the sponsoring agency expressly authorizing the U of M to bill the sponsor directly for the student's expenses. A third party credit is then applied to the student account each term for the covered expenses, which is then conditional upon the sponsor's payment.
A $25.00 processing fee will be charged to the sponsor on EACH initial invoice prepared for each term for each student. If more than one student is being sponsored, the sponsor may request that all of the students sponsored by their agency be billed on one invoice each term. If all students are billed on one invoice, each student's charges will be itemized and a grand total calculated for all students on the invoice. Sponsors requesting billing of all students on one invoice will be charged one $25.00 invoice processing fee per term.
What Are a Sponsored Student's Responsibilities?
- It is the student’s responsibility to ensure that the University is provided with a valid authorization letter (contract) from their sponsor, prior to the term beginning to avoid late payment fees and financial holds.
- A sponsored student must monitor their student account status regularly. If the sponsor does not cover the total charges, it is the student’s responsibility to pay the balance owing.
- Non payment by the sponsor, for whatever reason, becomes an immediate liability to and the responsibility of the student.
- It is the student’s responsibility to know the duration of the sponsorship as listed in the authorization letter. The University will not notify a student when the sponsorship has expired.
- Additional information required by the sponsor, including grades, transcripts, course(s) and other miscellaneous information, must be supplied by the student.
- If questions arise concerning conditions of the sponsorship, the student should contact the sponsor, not the University of Michigan.
- Provide a letter or contract to The University of Michigan prior to the term start date with the following information:
- Student’s name and University ID number
- Description of covered charges, which may include tuition, fees (Registration Fee, School & College Government Fee, Student Legal Services Fee, Michigan Student Assembly Fee,course fees), room and board, and international health insurance.
- Any dollar limitations on the covered charges
- Length of sponsorship – beginning and ending dates of period, specific term(s) and/or academic year(s), other.
- Sponsor’s billing address
- Sponsor contact person information including name, telephone number, fax number and email address.
- Sponsor should only make payment from University Invoice, not the student’s bill.
- Sponsor shall make payment to the University’s bank or mail payment to the provided address. Payment is due in full upon receipt of invoice notice. (Credit cards may also be accepted for payments with prior approval from University, subject to limitations).
- Sponsor will pay all enrollment adjustments on a student’s account for the term authorized, when applicable.
- Sponsor will pay to University, invoice processing fee or late payment fees if any.
- If sponsored student is an employee of the sponsor and is terminated during the term, the sponsor will pay as agreed and invoiced.
It is a document in which a sponsor commits to pay designated educational expenses for you. The letter from the sponsor specifies what they will pay, the period of coverage and billing information. Sponsors usually send the letter directly to the University, but some sponsors send the letter to the student.
If the letter is sent directly to you, complete any required information and submit it to Student Financial Operations before the due date to avoid late fees. We will then apply a conditional third party placeholder credit on your student account for the covered expenses as long as we receive it by the due date. Again, be aware that the balance owed is subject to late fees while it is outstanding.
When Do I Send the Letter of Authorization?
The sooner the letter is received the better, since early notification prevents late fees from accruing. It also allows students better information about what they personally will be expected to pay and eliminates unnecessary follow-up by students.
Where to Send the Letter of Authorization?
The University of Michigan
Attention: Sandy Taylor, Sponsored Accounts
2226 Student Activities Building
515 E. Jefferson St.
Ann Arbor, MI 48109-1316(734) 647-0061
Attention: Sandy Taylor, Sponsored Accounts
For Which Educational Expenses Will the University Bill My Sponsor?
The University will bill a sponsor for tuition, miscellaneous fees (Registration Fee, School & College Government Fee, Student Legal Services Fee, Michigan Student Assembly Fee,course fees), room and board in University Residence Halls, course and/or lab fees and international health insurance. Payments for other expenses should be coordinated between the student and their sponsor.
What Are The University's Responsibilities for Sponsored Students?
- Student Financial Operations (SFO) will review authorization letters (contracts) upon receipt and will certify eligible students. When presented prior to deadlines, this process will apply a third party credit for the covered expenses and avoid student account late payment fees.
- SFO will invoice the sponsor for the authorized charges. The invoice will state the student’s name and the total allowable charges.
- Any refund resulting from an adjustment to the student’s account after sponsor payment will be returned to the sponsor.
- SFO will charge back to student’s account any charges resulting from non-payment of sponsored charges by the sponsor.
- SFO will attempt to comply with a sponsor’s particular invoice requirements, but this is not guaranteed and is based upon system limitations.
I Am a Sponsored Student and I Am Also Eligible for a Graduate Student Assistant (GSA) Tuition Waiver. What Should I Do?
The sponsor will be billed for tuition and miscellaneous fees (Registration Fee, School & College Government Fee, Student Legal Services Fee, Michigan Student Assembly Fee,course fees), as authorized in the letter of authorization, even if the student is appointed as a GSA and receives a tuition waiver. If the student wishes to accept the GSA tuition waiver, the student must contact Student Financial Operations and fill out a third party waiver form in order to arrange for the sponsor not to be billed. The GSA waiver pays tuition only and does not include payment of the miscellaneous fees. If the student wishes to accept the GSA tuition waiver, the student will be responsible for payment of the miscellaneous fees. If billing of authorized charges is discontinued at the request of the student for any reason, a NEW letter of authorization must be received from the sponsor to resume the billing of the student's charges.
What Is the University's Billing Schedule for Sponsored Accounts?
Invoices will be prepared and mailed to the sponsors according to following schedule:
Who Can I Contact with a Sponsored Student Question?
Additional questions concerning authorization letters and sponsor billings should be directed to Student Financial Operations as follows:
Student Financial Operations
The University of Michigan
Attention: Sandy Taylor, Sponsored Accounts
2226 Student Activities Building
515 E. Jefferson St.
Ann Arbor, MI 48109-1316
Telephone: (734) 647-0062
Fax: (734) 647-0061
email: um-sponsors@umich.edu
Those sponsored students who did not submit their sponsor authorization letter prior to the term billing or if you did not pay your portion of the bill when due, may be responsible for any late payment fees assessed to their student account.
The University will invoice sponsors during the term after the drop and add period has passed. Invoices are sent to the contact person at the address provided in the authorization letter. Invoices are due upon receipt. The University will provide up to one (1) duplicate invoice by mail or fax as required, upon request.
What Happens if My Sponsor Doesn’t Make a Timely Payment?
A reminder communication will be made to the sponsor thirty (30) days after they have been invoiced. Affected students will also be notified at this time and a restrictive hold will be placed on their student account. Forty-five (45) days after the invoice date a second reminder will be sent, again with student notification. Sixty (60) days after the invoice date, if the invoice remains unpaid, the charges that are not paid by the sponsor will be placed on the student account and the student(s) will be billed electronically in the next student billing cycle. Students are legally responsible to pay the full cost of their educational expenses if their sponsor does not pay.
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