Third-Party Sponsored Billing

Overview

Many employers offer tuition assistance or education benefits as part of their employee benefits packages. Students should check with their Human Resources department for opportunities and eligibility.

Third-Party Sponsored Billing is a financial arrangement in which an entity—such as an employer, government agency, or other approved sponsor—agrees to pay all or part of a student’s charges directly to SMU. Under this arrangement, SMU invoices the sponsoring organization on the students’ behalf.

Important: Sponsors that require students to meet specific academic criteria (such as minimum grades) before making payment are not eligible for this billing option.

How It Works

The billing process begins when SMU receives official authorization from the sponsoring organization. Once authorization is received:

• The student’s account is conditionally credited for the amount the sponsor has agreed to pay.
• This conditional credit is not an actual payment; it is a placeholder reflecting expected payment.
• The credit prevents late fees and financial holds for the portion covered by the sponsor.
• Students remain responsible for any charges not covered by the sponsor.

Third-Party Authorization

A Third-Party Authorization is a formal document notifying SMU’s Third-Party Billing Office of a sponsor’s commitment to cover a student’s educational expenses.

This authorization may be referred to as:

• A financial guarantee letter (on official letterhead)
• A voucher
• A letter of credit
• A purchase order

To be valid, the authorization must:

• Be signed by an authorized official of the sponsoring organization.
• Clearly list all currently sponsored students.
• Confirm that payment is not contingent on grades or academic performance.
• Include a statement that the sponsor agrees to comply with FERPA and will not disclose student information without the student’s written approval.

Important Note: If a sponsor requires grade or transcript review before issuing payment, SMU cannot authorize third-party billing. In such cases, the student must pay directly and seek reimbursement from the sponsor.

Authorization Requirements

To ensure timely processing, the authorization must:

• Be written in English on the sponsor’s official letterhead.
• Include the sponsor’s name and billing address.
• Provide a contact name and billing details.
• State the student’s full name and SMU ID number.
• Indicate the effective date and sponsorship period.
• List all covered fees.
• Specify the payment amount, if applicable.
• Include any special billing instructions.
• Be signed and dated by an authorized official.

Deadline: Both the sponsor and student are responsible for ensuring the authorization is received before the first bill due date to avoid late fees.

Submitting Authorization

Send the authorization document to:

• Email: Lisa Kelley at lgkelley@smu.edu
• U.S. Postal Mail
  91×ÔÅÄ
  Office of the University Bursar
  Attn: Special Billing, Lisa Kelley
  P.O. Box 750297
  Dallas, TX 75275-0297

Billing & Payment Process

• Customized invoices are prepared after the add/drop date of each term to minimize adjustments.
• Invoices are generated based on finalized enrollment.
• Each invoice is sent as a PDF via email to the sponsoring organization.
• Payment is due from the sponsor upon receipt of the invoice.
• If payment is not received within 60 days, the conditional credit is reversed and holds/late fees are applied to the student’s account.

For assistance with this program, please contact Lisa Kelley at lgkelley@smu.edu or 214-768-4267.