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Third-Party Sponsorship

What is Third-Party Billing?

Third-party billing is an arrangement where an external organization (e.g., government agency, corporation, or state prepaid tuition plan) requires an invoice directly from Vanderbilt University and agrees to pay all or part of a student's tuition and fees to the university. This arrangement requires specific documentation and adherence to university policies.

Please review the following information before submitting any documentation.

Student Responsibilities

  • Submit Request for Third-Party Sponsored Billing

    Submit the Request for Third-Party Sponsored Billing to the Office of Student Accounts at least 30 days before the semester begins to ensure the sponsorship is reflected on your account in a timely manner.

    The Request for Third-Party Sponsored Billing is signed digitally by the student and must include an attached Billing Authorization Letter on sponsor's letterhead, signed by an authorized official, that includes:

    • Student's full name and Vanderbilt ID
    • Sponsorship start and end dates
    • Detailed list of covered fees (e.g., tuition, housing, health insurance)
    • Sponsor's billing address and contact information
    • Sponsorship type (domestic/international, U.S. government/non-government)
    • Statement confirming direct payment to Vanderbilt
  • Verify Receipt of Documentation

    Ensure the Office of Student Accounts has received and processed your documents. Inadequate or missing information may delay billing.

  • Monitor Your Account

    Regularly check your student account for updates. If your sponsor's payment has not been received within 45 days of the billing date, contact the Office of Student Accounts.

  • Pay Charges Promptly

    You are responsible for any charges not covered by your sponsor. Failure to pay these charges by the due date may result in late fees and/or holds on your account.

  • Important Notes

    Upon receipt of the Billing Authorization Letter, a conditional credit will be applied to the student's account. This does not mean that the sponsor’s payment has been received.

    If the sponsor fails to pay within the specified time frame, the credit will be reversed and the student will be responsible for the balance. Failure to pay these charges by the due date may result in late fees and/or holds on your account.

    Any refundable credit on the student account may be withheld, in whole or in part, until payment is received from the sponsor.

    Invoices are not sent to sponsors until after the end of the student change (add/drop) period.

    The following are not eligible for third-party billing:

    • Employer reimbursements to the student
    • Scholarships
    • 529 College Savings Plans (except in states where direct billing is required, such as Florida Prepaid or College Illinois)
    • AmeriCorps Education Awards
    • Trust funds

Sponsor Responsibilities

  • Review Tuition and Fees

    Determine which student tuition and fees will be covered by the sponsor, which can be viewed at:

    https://www.vanderbilt.edu/stuaccts/fees/

  • Provide Timely Authorization

    An authorization form must be created on company letterhead and must contain the following:

    • Name of the student
    • Student’s Vanderbilt account number (nine digits beginning with at least two zeroes)
    • Beginning and end date of sponsorship
    • Type of fees covered (tuition, health insurance, housing, dining, etc.)
    • Sponsor’s contact information (representative name, billing address, email, phone number)
    • Indication of international or U.S. government sponsor classification

    Provide the student with the billing authorization letter to be submitted to the Office of Student Accounts at least 30 days before the semester begins.

    If the sponsorship requires that the authorization be submitted directly to the university, please email it to student.accounts@vanderbilt.edu.

  • Payment Guidelines

    Payments should be made directly to Vanderbilt University, not to the student. The accepted methods of payment are ACH/wire or check.

    The sponsor should not deduct any taxes or other charges from the invoiced amount without prior approval from Vanderbilt. Additionally, sponsors are not to send excess funding for student reimbursement through Vanderbilt.

    Sponsors are expected to remit payment within 45 days of the billing date. Delays in payment may result in holds being applied to the student's account. It may also result in the reversal of the conditional credit applied to the account and the assessment of late fees.

    Sponsors cannot delay payment or require grades to be submitted as contingency for payment.

Vanderbilt University Responsibilities

  • Contract Review & Setup
    • Receive, review, and approve the sponsor’s authorization letter.
    • Check student eligibility for third-party sponsorship. If not eligible, the student will be notified.
    • Vanderbilt will determine if the sponsorship should be processed as a tuition benefit or scholarship through the Office of Student Financial Aid and Scholarships.
  • Assign Student to Third-Party Contract
    • Create or update the third-party contract as agreed upon in the sponsor's authorization letter.
    • Post a third-party credit to the student's account for the amount the sponsor is expected to pay.
  • Invoicing & Billing
    • Generate and send invoices to sponsors after the student add/drop deadline via the sponsor's requested invoice submission method.
    • Ensure each invoice includes required details.
  • Payment Processing & Reconciliation
    • Correctly process payments received (check, ACH/wire transfer).
    • Reconcile sponsor payments and outstanding invoices. The third-party credit will be adjusted if the payment received is less than the invoiced amount or removed if payment has not been received by the due date.
  • Communication & Administration
    • Respond to inquiries, clarify billing questions and provide invoicing or payment status updates.
    • Ensure third-party billing practices comply with university policy.