Skip to content Menu

Definition of a Third-Party Payment

A third-party sponsor is an entity that has agreed to pay all or a specified portion of a student or group of students' tuition, fees, books and other charges at an institution of higher education.

Third-party sponsors may include, but are not limited to, federal and state agencies, corporations, employers, school districts, trade unions, foundations, tribes, clubs, charitable organizations, and foreign governments. Institutions require a sponsor to provide an official document guaranteeing payment (i.e. letter, agreement, contract, certification, application, etc.).

Sponsors are typically invoiced directly for the charges they have agreed to pay, but institutions may also have sponsors that do not require an invoice.

The liability for payment of tuition and fees ultimately lies with the student if a sponsor fails to pay all amounts as agreed.

University services to the student may be restricted if financial obligations are not met.

 

NACUBO Resources

Contact

Bryan Dickson

Assistant Director, Advocacy and Student Financial Services

202.861.2505

bdickson@nacubo.org


Related Content

Student Financial Services Benchmarking Report Infographics

The new Student Financial Services Benchmarking Report Infographics illustrate the rise in the use of electronic student payment methods and refunds, and trends in SFS staff expenditures.

NACUBO Benchmarking Tool

NACUBO Student Financial Services Benchmarking Report

The annual Student Financial Services (SFS) Benchmarking Report examines trends in student financial services operations, staffing, and SFS operating budgets at NACUBO member colleges and universities.