Facing past-due tuition bills can be stressful, but it doesn’t have to mean the end of your education. It’s important to address the situation quickly, though, so you can still register for classes and keep making progress toward graduation.
There are a number of steps you can take to get back on track, from applying for financial aid to borrowing a private student loan.
The consequences of missing a tuition payment to your school can be serious. Your tuition may be considered past due immediately after your payment deadline has passed, though some colleges offer more wiggle room. If you’re on a payment plan, your tuition may be past due when you miss a bill. Check with your school’s financial aid office about its policy.
Missing a tuition payment can result in more than just added fees, and consequences can include:
Although the consequences for past-due tuition may sound severe, most won’t happen right away. If you deal with the situation in a timely manner, you can remain enrolled in school and get your course registrations back on track.
Here are some steps to pay off past-due tuition.
As soon as you know you can’t make a payment, reach out to your school’s financial aid office to discuss your options. Some schools will let you set up a payment plan, so you can pay off your bills over time, or offer you an emergency student loan.
The financial aid office may also help you source other types of funding, such as emergency financial aid from your state, nonprofits, or other organizations that could help you through this tight spot. As always, prioritize aid that doesn’t need to be repaid, such as emergency grants, over emergency loans.
If you haven’t already, submit the Free Application for Federal Student Aid (FAFSA) so you can access federal grants and loans. If you have already submitted it, sign into your Federal Student Aid account to see if you have any unclaimed funds to draw on, such as Direct Unsubsidized or Subsidized Loans.
You might also revisit your state’s equivalent to the FAFSA (if it has one) to update your financial standing or retrieve unused funding.
If your financial circumstances have changed — you have excessive medical expenses, for example, or have suffered the loss of a parent — consider appealing your federal aid award to get more funds. You’ll likely have to provide documentation of your changed circumstances. Your school’s financial aid office can help you with this process.
Finally, you can explore your options for a private student loan to cover your bills. Keep reading to learn more about this option.
Scholarships, grants, work-study or other jobs, and federal student loans should usually be your first stop for paying past-due tuition. If you’ve exhausted these avenues and still need funding for school, however, a private student loan could make sense.
You can borrow from private lenders at any time throughout the school year. You’ll need to pass a lender’s requirements for credit and income to qualify. Since many college (and even some graduate) students can’t qualify on their own, they often apply with a creditworthy cosigner, such as a parent.
There are both pros and cons to borrowing private student loans for college. On the plus side, many private lenders offer as much funding as you need, up to your school-certified cost of attendance.
You might qualify for a competitive interest rate, and you can usually choose terms between five and 15 years. You’ll also likely get to choose between a fixed interest rate and a variable interest rate.
On the negative side, though, private student loans aren’t eligible for the same range of protections as federal loans are. They don’t qualify for income-driven repayment or federal loan forgiveness programs, for instance. Some private lenders also let you pause payments if you run into financial hardship, but your options will vary by lender.
If you’re considering a private student loan to pay for past-due tuition, make sure to shop around and compare your options.
Related: Learn more about getting a private student loan on Credible.com