How To Take Care of Past-Due Tuition

Falling behind on tuition can put your enrollment, registration or graduation timeline at risk. If you have a past-due balance, options like federal student loans, emergency funding from your school, and private student loans may help you catch up.

However, each option has different eligibility rules, funding limits, and repayment terms, so it’s important to understand the trade-offs before you borrow. 

Compare private student loan rates

What happens if you have past-due tuition?

A past-due tuition balance can create problems beyond the amount you owe. Depending on your school’s policies, consequences may include:

• Blocked registration: Colleges can place student account holds that can block you from enrolling in new classes.
• Late fees: Schools can add a late fee to your outstanding tuition balance, and the amounts will vary by school. For example, The University of Texas charges a $25 late fee, while The New School in New York charges a $230 late fee per term.
• Withheld transcripts: Some schools may not release your official transcript if you have an outstanding balance. Without access to your transcript, it can be more difficult to transfer to another school, apply for certain jobs, or verify your academic credentials.
• Delayed diploma: Outstanding financial obligations can be why your school doesn't give you a diploma, even if you've met the graduation requirements.
• Collections or credit damage: One of the more serious consequences of unpaid tuition is damage to your credit. Colleges can send your account to collections and report any missed payments to credit bureaus.
• Visa issues: Past-due tuition puts international students at risk of losing their visa eligibility.

What to do when your tuition is past due

If your tuition is past due, contact your school’s financial aid office as soon as possible. Many colleges have options for students who are struggling to pay, including payment plans, emergency grants, interest-free loans, or additional financial aid.

Your school may point you to one or more of the following options. 

Keep Reading: How To Go Back to School With Student Loans in Default

Use federal student aid

Federal student loans may help cover a past-due tuition balance, but your options depend on when you incurred the debt.

If the balance is from a previous academic year, federal loans can only cover up to $200 in prior-year expenses. If the balance is from an earlier semester in the same academic year, you may be able to use any remaining federal loan funds you were eligible for but didn’t accept.

Start by logging in to StudentAid.gov to review your current financial aid package. Then contact your school’s financial aid office to ask whether you have any unused federal loan eligibility and whether those funds can be applied to your past-due balance.

Keep in mind that federal loan limits still apply. If you’ve already borrowed the maximum amount available for the year, you likely won’t be able to take out more federal loans to cover unpaid tuition.

Apply for emergency funding

Some colleges have emergency funding options including grants and interest-free loans to help students cover tuition and other educational expenses. Reach out to your financial aid office to see if there are resources that can help. Generally, emergency funding is available to students who are experiencing a change in circumstances or financial hardship.

You can also look at different nonprofits and organizations that provide emergency funding assistance. For example, UNCF offers a $2,500 degree completion grant and emergency retention grants of $1,000 for students at risk of dropping out.

Apply for private student loans

Private student loans may be an option if you’ve exhausted federal aid and school-provided emergency funding. Some private lenders allow you to use loan funds to cover a past-due tuition balance, though there are usually limits.

For example, College Ave, Earnest and SoFi are among the lenders that may allow you to pay past-due tuition, as long as the balance is no more than 365 days overdue.

Private student loans are available year-round, unlike federal loans, which are restricted to specific application periods. Before applying, compare lenders to make sure the loan can be used for past-due tuition. You’ll also want to review interest rates, repayment terms, and credit and income requirements.

If you don’t meet a lender’s requirements on your own, you may need to apply with a cosigner. A cosigner shares responsibility for the loan and is legally required to repay it if you can’t.

Dip into your personal funds

Tap into your own resources, like savings, gift money, or tax returns, to cover tuition costs if you don't qualify for federal or private student loans. Only use credit cards if you're certain you'll be able to repay the balance to avoid accumulating more debt.

Check for college tuition payment plans

Your school may offer tuition payment plans that can help break down your tuition costs into more manageable chunks. This makes it easier to pay for college going forward. However, your school may require you to be in good standing and not have past-due tuition to qualify.

Tuition payment plans are offered by some schools and allow you to break down the cost into more affordable monthly payments. Here are the steps to set up a tuition payment plan:

1. Check availability: Confirm that tuition payment plans are available from your school.

2. Contact the financial aid office: Talk to a representative at your school's financial aid office about eligibility requirements and how to set up a tuition payment plan.

3. Enroll online: You may be able to enroll in a tuition payment plan online through your student account. Otherwise, follow the instructions from your financial aid office.

4. Make payments: Once enrolled, make payments by the due date to avoid past-due tuition.

Can student loans cover past-due tuition?

Some student loans specifically cover past-due tuition, but not all. Federal student loans have a $200 limit for prior-year tuition, as they're typically used for current coursework. However, private student loans for tuition balances that are outstanding are available from some private lenders.

Private student loans don't have the same deadlines as federal loans — you can apply for them anytime. For this reason, private loans can be more accessible for paying past-due tuition.

However, keep in mind that even if you're approved, it could take around three weeks from the time you submit your private loan application until you receive your funds — or up to two to three months if there are any delays. Because of this, it's a good idea to apply as far in advance as possible to give yourself plenty of time.

How to avoid past-due tuition in the future

Here are a few steps to take before your next tuition payment is due:

• Track tuition deadlines: Check your school’s tuition due dates before each term starts. Add them to your calendar so you have time to set up a plan or ask for help before your balance becomes past due.
• Contact your financial aid office early: If you know you’ll have trouble paying, reach out right away. Your school may be able to offer a payment plan, emergency aid. or other options before late fees or account holds apply.
• Submit the FAFSA on time: The FAFSA is due by June 30 of the academic year you’re applying for, but many states and schools have earlier priority deadlines. Submit it as early as possible to maximize your chances of receiving federal, state and school-based aid.
• Use federal aid first: Review all federal aid you’re eligible for, including grants, work-study and federal student loans, before turning to private loans or other financing options. Federal loans typically offer more flexible repayment options than private loans.
• Consider work-study or part-time work: If you’re eligible for federal work-study, it can help you earn money for school-related expenses. A part-time job can also help cover smaller education costs.