How To Take Care of Past-Due Tuition in 2025

Keeping up with school costs can get dicey when your student loan doesn't cover the full cost of tuition and your living expenses. Universities usually give students a few weeks to a couple of months after the start of the semester to pay their tuition and other fees.

If you fall behind and end up with a past-due balance because of a financial emergency or an unexpected circumstance, certain student loans or other financial aid can help cover your past-due tuition.

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. However, these options come with both pros and cons you should be aware of. 

Here's everything you need to know about how they work:

What happens if you have past-due tuition?

When you have a past-due tuition balance, your school can respond in many ways, negatively affecting your academic life and overall mental state. These include:

• Block registration: Colleges can place student account holds that can block you from enrolling in new classes.
• Impose 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.
• Withhold transcripts: Your transcripts help you apply for internships, graduate school, or programs like the Peace Corps. When you have past-due tuition, your school can withhold your transcript. However, not all states allow this. A new regulation that went into effect on July 1, 2024, prohibits schools from withholding transcripts for courses that were paid for with federal funds.
• Hold back diploma: Outstanding financial obligations can be why your school doesn't give you a diploma, even if you've met the graduation requirements.
• Report to credit agencies: 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.
• Loss of visa: Past-due tuition puts international students at risk of losing their visa eligibility.

What to do when your tuition is past due

Many colleges and universities assist students when they have difficulties paying for past-due tuition, including payment plans, financial aid opportunities, and emergency funding. So, the first thing to do is contact your school's financial aid office

If your account is delinquent and your expected financial aid hasn't yet come through, it's important to talk to the office. You could qualify for an emergency loan through the school, which pays off your balance and allows you to register for or continue to attend your classes.

Communicating with the financial aid office instead of ignoring a past-due balance can lead to more serious financial and academic consequences. They can connect you with resources specifically available to students in similar financial situations. Besides emergency loan options, your school's financial aid office is a great resource for finding grants, scholarships, and work-study opportunities you could qualify for.

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

Options for paying past-due tuition

When you have a past-due balance, there are several options to help you get back on track and in good standing again.

Complete the FAFSA for federal aid

Federal student loans are the best way — and should be your first option — to pay for college because of the benefits you receive. These loans help pay for your current tuition and other expenses, but schools can also use up to $200 toward past-year expenses, according to the Federal Student Aid (FSA) Handbook. While federal financial aid for past-due tuition is limited, it helps.

First, fill out the Free Application for Federal Student Aid (FAFSA). Your school uses this to determine your eligibility for federal, state, or institutional aid. You might qualify for college grants, scholarships, or federal student loans — which you can use to cover your past-due balance and future education costs.

You can fill out the FAFSA online at StudentAid.gov. Create an FSA ID, which is your unique login information. If you're a dependent student, you'll submit the required information for yourself and your parents. The FAFSA is usually due on June 30 every year, but you have until early September to make corrections or updates.

Some states and schools have their own deadlines. Double-check with your school's financial aid office to find out if there are any other deadlines. The sooner you submit the FAFSA, the better — especially since some aid is given on a first-come, first-served basis.

Apply for emergency loans or grants

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 not included in your FAFSA application. Your school's financial aid office has the discretion to update your award.

Apply for private student loans

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

When your tuition balance is past due, getting help is possible. 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, only borrow as much as you need.

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 different private lenders. Be 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 is one private lender that allows you to pay past-due tuition with their loan, 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 share the risk of borrowing and are liable for payment if the loan is delinquent.

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 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.

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.

Do 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.

Unlike federal loans with strict deadlines, you can apply for private student loans anytime. 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 before the June 30 deadline of the current 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.