How To Handle Past-Due Tuition in 2025

Colleges typically give you a few weeks or months after the start of the semester to pay your tuition and other fees. If you fall behind and end up with a past-due balance due to a financial emergency or other unexpected circumstances, student loans or other financial aid could help cover your past-due balance.

Federal student loans, emergency loans through your school, and private student loans are among the options that can help you get caught up on payments. Here's what you need to know about how they work.

What happens if you have past-due tuition?

If you have past-due tuition, your school can respond in a number of ways that can affect your academic life. These include:

• Blocked registration: Student account holds may be in place if you have past-due tuition, blocking you from enrolling in new classes.
• Late fees: When you have past-due tuition, your school can add a late fee to your outstanding balance. Late fee amounts vary by school. For example, The University of Texas charges a $25 late fee, while the New School charges a late fee of $230 per term.
• Withheld transcripts: Your transcripts can help you apply for an internship, graduate school, or program like the Peace Corps. If you have past-due tuition, your school may withhold your transcript. However, not all states allow this, and a new regulation in effect as of July 1, 2024, prohibits schools from withholding transcripts for courses that were paid for with federal funds.
• No diploma: Your diploma is your proof that you've completed your education. But if you have an outstanding balance, your school may deny access to your diploma.
• Damaged credit: One of the more serious consequences of unpaid tuition is damaged credit. Your school can decide to send your account to collections and report your missed payment to the credit bureaus.
• Loss of visa status: International students are particularly at risk with past-due tuition, as it could affect their visa eligibility.

Steps to take when your tuition is past due

1. Fill out the FAFSA to claim federal loans

If you need to cover college expenses (such as past-due tuition), your first step is to fill out the Free Application for Federal Student Aid (FAFSA). Your school will use your FAFSA results to determine what federal, state, or institutional aid you're eligible for.

For example, you might qualify for college grants, scholarships, or federal student loans — which you can use to cover your past-due balance as well as future education costs.

You can complete the FAFSA online at StudentAid.gov. Create an FSA ID, which is your unique log-in information. If you're completing the FAFSA as a dependent student, you'll submit information for yourself and your parents. Visit StudentAid.gov for more information about dependency status.

Fill out the FAFSA before the deadline so you don't miss out on any e financial aid. The FAFSA is usually due on June 30 every year, but you have until early September to make corrections or updates. Note that some states and schools have their own deadlines, too. Double-check with your school's financial aid office to see if there are any other deadlines. Keep in mind that the sooner you submit the FAFSA, the better — especially since some aid is given on a first-come, first-served basis.

2. Contact your financial aid office about emergency loans

Some colleges offer emergency student loans when you're facing a short-term crisis. If your account is past due and your expected financial aid hasn't come through, talk to your financial aid office.

You might qualify for an emergency loan through the school that will pay off your balance and let you register for classes.

Make sure to stay in contact with your financial aid office instead of ignoring the problem of a past-due balance. They're there to help you and can connect you with resources specifically available to students in your situation.

In addition to assisting with emergency loan options, your school's financial aid office is a great resource to help find opportunities for grants and scholarships you might qualify for, as well as work-study programs.

Find Out: How Do Private and Federal Student Loans Work

3. Apply for private student loans

A private student loan could also help you pay off a past-due balance when your federal student aid is exhausted. Private student loans typically have lower interest rates and longer repayment terms than personal loans, plus higher student loan limits.

If your tuition balance is past due, it's possible to get help. For example, a private student loan from Credible can help you get the funds you need to get current on your tuition. If you decide to take out a loan, make sure to only borrow as much as you need.

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

Best options for paying past-due tuition

These are options to pursue if you have past-due tuition:

Federal student loans

Federal student loans are a way to pay for your college tuition. To get started, submit the Free Application for Federal Student Aid (FAFSA) by the annual deadline.

While federal loans can help pay for your current tuition and other expenses, schools may use up to $200 toward prior-year expenses, according to the Federal Student Aid (FSA) Handbook. While federal financial aid for past-due tuition is limited, it can help. It's important to submit the FAFSA on time every year, as you may qualify for grants, scholarships, and work-study.

Emergency funding

Some colleges have emergency funding options available to help students cover tuition and non-tuition-related expenses. These are typically small amounts of $500 to $1,000. 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.

Review your financial aid package

Check if your financial aid award can be adjusted to reflect unforeseen circumstances or emergencies that weren't initially included on your FAFSA application. Your school's financial aid office has the discretion to update your award.

Private student loans

Since you can't use much federal financial aid for past-due tuition, you can look into private student loans for tuition balances as an alternative. These types of loans from private lenders may help you pay for your outstanding balance and get in good standing with your school, and unlike federal loans, you can apply for them at any point during the year.

Before going this route, compare private lenders. Make sure you can use the funds for past-due tuition and look at minimum loan amounts, interest rates, and credit and income requirements. College Ave and Earnest are two private lenders that allow you to pay past-due tuition, so long as it's not more than 365 days past due.

If you don't have sufficient credit or income, you'll need a cosigner to get approved. Cosigners take on the risk of borrowing and are liable for payment if the loan is delinquent.

Compare current student loan rates

Use personal funds

Tap into your own resources, such as 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.

Tuition payment plans

Your school may offer tuition payment plans that can help break down the costs of your tuition 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.

How to set up a tuition payment plan

Tuition payment plans are offered by 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:

• Check availability: Confirm that tuition payment plans are available from your school.
• 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.
• 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.
• 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 can 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 come with the same deadlines as federal loans - you can apply for them any time. For this reason, private loans can be more accessible for paying past-due tuition.

Unlike federal loans that have strict deadlines, you can apply for private student loans at any time. 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.

Tips for avoiding past-due tuition in the future

To avoid past-due tuition in the future:

• Submit the FAFSA by the deadline, which is June 30 of the academic year.
• Exhaust all federal aid available.
• Check tuition payment deadlines with your school.
• Contact your school's financial office immediately if you're struggling.
• Apply for grants and scholarships, and look into work-study opportunities.
• Take advantage of employer tuition assistance, if available.