Sponsored & Third-Party Billing

Sponsored billing & third-party billing is a financial sponsorship agreement by an organization, agency, or company foundation outside Penn State who makes a promise or commitment to pay for educational expenses on a student’s behalf.  The specific tuition and fees the sponsor agrees to pay are called the authorized charges.  Penn State students can enroll in sponsored billing, an arrangement where the University invoices the student’s sponsor for authorized charges on the student’s behalf.

Upon receipt of a valid financial guarantee/voucher/letter of credit/billing authorization, the third-party billing team will apply a conditional credit to the student’s account.  The conditional credit does not represent payment from the sponsor or relieve a student of his or her financial responsibilities.

The third-party sponsor will be issued an invoice after the end of each semester’s add/drop deadline.  If the sponsor does not pay the invoice by the end of the academic term, the conditional credit will be removed from the student’s account, and the unpaid charges will be placed back on the student’s account.  This process is called reinstatement and is done shortly after each academic semester ends.

Some commons examples of Sponsor or Third-Party Billing entities are:

• Foreign Countries
• Government agencies (including military branches)
• Private and public organizations
• Trust accounts
• Employers

Students may be eligible if:

Sponsored student agrees to the terms of the sponsorship by submitting a financial guarantee/voucher/letter of credit/billing authorization to the third-party billing team.  Submitting this document acknowledges that the student understands the responsibility of their administrative and financial responsibilities in the Sponsored Billing process outlined below:

• Sponsored billing does not relieve the student of the financial obligations to Penn State University. If the sponsor fails to pay any amount for any reason, the student remains responsible for paying the financial obligations to Penn State University.
• Student understands that Penn State applies a conditional credit (shows as Sponsored Billing in LionPATH) to the sponsored student account and then invoices sponsor for the authorized charges outlined in the financial guarantee/voucher/letter of credit/billing authorization. This conditional credit does not represent payment from the sponsor.
• A Bursar Sponsor Non-Payment (BSN) service indicator will be applied to the student’s account if the sponsor has not made payment within 30 days after they are invoiced. Once the conditional credit is paid, the service indicator will be removed.
• If sponsor does not pay the authorized charges in full by the end of the academic term, the unpaid charges are reinstated on the student account after the term ends. The student is responsible for paying reinstated charges in full.
• Student agrees to receive email notifications from the University to their official University email account (PSU UserID@psu.edu) concerning sponsored billing activity.
• Student is responsible for monitoring his/her official University email account on a regular basis and reading important notices about the status of their sponsored billing activity. If the student does not understand these notifications, they will contact the Penn State Third-Party Billing team for help at thirdpartybilling@psu.edu.
• Student must provide their third-party sponsor with the appropriate third-party billing team’s email (thirdpartybilling@psu.edu), where the financial guarantee/voucher/letter of credit/billing authorization should be sent.
• It is the responsibility of the student to submit their documentation before the semester bills are due, or late fees will be assessed.

The financial guarantee/voucher/letter of credit/billing authorization must be on official letterhead and include:

• Sponsoring organization’s name, billing address, phone number, and email address.
• Student’s full name.
• Student’s nine-digit Penn State ID number
• Identification number that is used by the sponsoring organization to identify the student, so this number can be added to the invoice.
• Active dates and/or academic term(s) covered by the financial guarantee/voucher/letter of credit/billing authorization.
• All authorized charges that the sponsoring organization will pay, including any limits or maximum amounts:
  Tuition, Mandatory Fees, Course fees (labs, music, art fees, etc.), Health Insurance, other fees

Students are not eligible for Sponsored & Third-Party billing if:

• Payments are sent directly to the student.
• A family member pays on the student’s behalf.
• The sponsor requires a grade or transcript review before paying. Refer to the Tuition Deferment for Employer Reimbursement Program.
• Students are not eligible for sponsorship if the sponsoring company is owned by the student, their parent or guardian, or any other family member.

• Follow up: If the sponsor is late with a payment, the student is responsible for paying any outstanding charges to avoid late fees or accounts holds.
• Stay informed: Review the applicable charges that your sponsor’s payment will cover.  The third party may not cover all costs, and the student is responsible for the remainder.

To be able to participate in Sponsored & Third-Party Billing, a student must:

• Submit a financial guarantee/voucher/letter of credit/billing authorization, and by submitting that document, the student acknowledges that they understand the responsibility of their administrative and financial responsibilities in the Sponsored Billing process (outlined in the Eligibility & Required Documents section).

To be able to participate as a sponsor, a third-party sponsor must:

• Provide a financial guarantee/voucher/letter of credit/billing authorization on official letterhead to include:
  • Sponsor’s name, billing address, phone number, and email address.
  • Sponsor’s signature.
  • Student’s full name and Student’s nine-digit Penn State ID number
  • Identification number that is used by the sponsor to identify the student, so this number can be added to the invoice when sent to the sponsor.
  • Active dates and/or academic term(s) covered by the financial guarantee/voucher/letter of credit/billing authorization
  • All authorized charges that the sponsor will pay, including any limits or maximum amounts: Tuition, Mandatory Fees, Course fees (labs, music, art fees, etc.)
  • Health Insurance, Other fees

Effective spring 2026, Penn State University has partnered with Flywire to provide third-party sponsors with a secure and simple invoicing and payment process with access to domestic and international payment options. With our sponsor portal, you can: 

• Access easy-to-read invoices 24/7 and make a secure payment directly from the invoice.
• Choose your preferred payment option with local, convenient payment methods available in 140+ currencies.
• Pay full or partial invoice amounts as well as per line item.
• Easily add notes and comments about short payments for transparency.
• Create your own login credentials to manage invoices and payment records. After account creation, quickly add additional users from your office to view invoices and make payments.  
• Track the status of invoices and payments directly from your sponsor portal.

PROCESS

Account Activation

Once you are identified as a sponsor, we will email the primary sponsor contact the first invoice along with an activation link to create an account.

• All third-party sponsor invoices are sent by email via the Penn State University invoicing platform (powered by Flywire).
• Once received, select a username and password to create your account.
• Once your account has been activated, you can easily view invoices and create login credentials to our sponsor portal to seamlessly manage all Penn State University invoices and your payments, all in one place.
• After the primary sponsor contact creates an account, they can quickly add additional users from your office to view invoices and make payments.
• Note: Your login credentials will work across any institution leveraging Flywire’s third-party invoicing platform. If you have already activated an account for another institution, simply login with those credentials - there is no need to create a separate account for Penn State University.

Invoices and Payments

Third-party sponsors will receive invoices by email via the Penn State University invoicing platform (powered by Flywire).

• Make your payment directly from the invoice by clicking the “Pay now” button to pay securely with ease. You have the option to edit your payment amount for each line item presented on the invoice. Note: please add a comment or explanation if you are paying less than the invoiced amount.
• You will be provided with convenient payment options available in your country and location. Payment options include:
  • For U.S.-based sponsors: ACH (e-check) and credit card
  • For non-U.S. sponsors: International payment options in 140+ currencies (including wire transfer)
    • Select your country (including U.S. for wires) and choose from the payment options displayed. Options can include local bank transfers, wire transfers in USD, credit cards, and more depending on your country.
    • Follow the instructions and remit your payment as instructed.

• Log in to the sponsor invoicing portal at any time to view and manage all your invoice and payment records.

For additional information, access the Third-Party Invoicing Sponsor User Guide directly from the left-hand menu in the invoicing platform.