Paying for college is a significant expense for many students and families. With rising tuition costs, it’s not uncommon for some students to struggle to pay their college bills. However, failing to pay your college bill can result in serious consequences that can affect your education, finances, and credit. Here’s an overview of what can happen if you don’t pay your college bill.
Late Fees
One of the first things that will likely happen if you don’t pay your college bill on time is you’ll incur late fees Most colleges charge monthly late fees that can range from $25 to $100 or more. These fees add up quickly, increasing the amount you owe. For example, if your tuition bill is $5,000 for the semester and you’re charged a $50 late fee each month, after just two months you’ll owe $5,100. The longer you go without paying, the more these fees can pile up
Registration Hold
If your college bill remains unpaid after the due date, the school will likely place a hold on your academic records. This means you won’t be allowed to register for classes, receive transcripts, or get your diploma until the balance is paid off. Having a registration hold essentially prevents you from continuing your education until the financial issue is resolved.
Dropped Classes
If you still have not paid your outstanding college bill after a registration hold has been placed, the next step many schools take is to drop you from your enrolled classes. Once this happens, you are no longer considered a student for that term. Your only option at that point is to pay the past due balance, after which you can re-enroll for a future term.
Withheld Transcripts
Colleges often will not release official transcripts for students who have outstanding balances. This can create problems if you need to provide transcripts to transfer colleges, graduate school programs you’re applying to, or employers. Even if you’ve technically completed your coursework, the lack of an official transcript showing your degree can hinder your academic and career progress.
Withheld Diploma
Similarly you will not be issued your actual diploma certificate until your college bill is paid in full. So even if you’ve completed all your course and degree requirements, you cannot officially graduate and get your diploma document until any past due balance is resolved.
Removal from Campus Housing
For students living on campus, not paying tuition bills can result in getting kicked out of student housing. Schools will remove you from dorms and revoke your meal plan if you fail to pay outstanding balances for an extended period. This leaves you scrambling to find alternate housing on short notice.
Collections
One of the worst outcomes of not paying your college bill is having the account sent to collections. If you ignore notices and do not attempt to pay off your balance for several months, the school may turn the debt over to a collections agency. Once in collections, the agency will aggressively attempt to collect on the debt through letters, phone calls, and lawsuits. Having an unpaid collections account can severely hurt your credit score as well.
Credit Damage
Speaking of credit, not paying your college balances can damage your credit, making it difficult to get approved for loans, credit cards, and other financing in the future. Unpaid tuition bills typically won’t report to the credit bureaus. However, if the debt goes to collections, this will show up on your credit report and lower your credit score. The collection account will stay on your report for seven years.
Legal Action
As a last resort, your college may pursue legal action to recover unpaid balances. If other collection attempts fail, they can file a lawsuit against you to obtain a court judgment mandating you to repay the debt. If the court rules in the school’s favor, your wages may be garnished or liens placed on your bank account or property. You will also owe any legal fees associated with the court action.
Long-Term Consequences
Even after you eventually pay your outstanding college bill, there can be lasting consequences. In addition to years of credit damage if the account went to collections, having a hold on your academic records can remain on your student file permanently in some cases. This continued hold may need to be manually removed by the school even after paying the debt.
Some schools also have policies permanently prohibiting students who previously had unpaid bills from getting transcripts or registering for classes again in the future. So even years later, prior unpaid balances can still prevent you from taking courses or getting records from that institution.
Seek Help Immediately
If you’re having issues paying your college bill, it’s critical to seek help as early as possible. Contact the financial aid office about payment plan options, emergency loans and grants, or other assistance programs. Schools want to help students, so take action before the account is sent to collections or legal action is pursued.
Prioritize paying tuition over other expenses, reduce spending, pick up a part-time job, apply for more student loans, or ask family for help if necessary. Setting up a payment plan can make the balance more affordable by spreading payments out over time. While payment plans do charge fees, it’s better than damaging your credit or academic record.
Some states prohibit colleges from withholding transcripts or diplomas for unpaid bills, so contact your state attorney general’s office if you believe the school is unlawfully doing so. If the account has already gone to collections, you still have options like settling the debt or setting up a repayment plan.
Avoid Future Problems
To avoid unpaid college bills in the future, carefully estimate costs each year and determine how you will pay ahead of time. Adjust your financial aid package if needed to cover the full expenses. Many schools offer short-term emergency loans and tuition payment plans as well.
Stick to your payment deadlines every semester, and immediately contact the financial aid office if you anticipate any issues paying the next bill. Managing college costs responsibly from the start is always preferable to dealing with the penalties of unpaid bills.
What Is a Tuition Payment Plan?
If youre late paying tuition, you may be offered or enrolled in a tuition payment plan. These installment plans convert tuition payments into monthly installments, which can make individual payments more manageable. The Consumer Financial Protection Bureau (CFPB) reviewed tuition payment plans at 450 colleges and universities. Here are a few of their findings:
- Payment plans may have enrollment fees. In some cases, these fees were as high as $200.
- Enrollment may be automatic or easy to overlook. Plan agreements and disclosure documents that spell out fees and terms may be included with other registration documents where they go unnoticed. Students and their parents may not realize what theyre signing.
- Late fees and penalty interest may apply. While many tuition payment plans are interest-free, they may have late fees that can increase the amount you owe. If you dont make your payments on time, your balance may be subject to interest, which also increases your balance.
Overall, a tuition payment plan can be helpful if you need help tackling a large balance. However, payment plans dont reduce the total amount of money you owe, and may have fees or terms that can increase your debt and make it more difficult to bring your account current. If you truly cant afford your tuition, a payment plan may not be enough.
Can Unpaid Tuition Hurt Your Credit?
With or without a tuition payment plan, unpaid tuition can hurt your credit if your account goes into collections. Your school may have its own collection department or it may sell unpaid tuition debt to a collection agency. A collection account stays on your credit report for seven years from the date of the original delinquency. Collections on your credit report will lower your credit score for as long as theyre there, though the effect decreases over time.
If collections arent resolved and the amount owed paid, your school may choose to take legal action. Youll need to hire a lawyer to defend you or run the risk of a default judgment. A civil judgment against you wont appear on your credit report or affect your credit score. However, you may be responsible for any fees associated with collecting your debt.
What Everyone’s Getting Wrong About Student Loans
FAQ
What happens if you owe a college money and don’t pay?
What happens if you never pay for college?
What happens if I don’t pay my student fees?
Can unpaid tuition hurt your credit?
What if I don’t pay my college Bill?
Make a plan to pay the bill by the due date. If you don’t pay your college bill in full or sign up for a payment plan before the due date, the college may drop your classes or charge you late fees. If you need help understanding your college bill or financial aid, reach out to the college by phone or email.
Why is my college bill not showing up?
If you made a payment or set up a tuition payment plan recently and it’s not showing up on your bill, it could mean the college is still processing those payments. Check your student portal regularly for an updated billing statement or reach out to the office that sent your bill. What happens if I don’t pay my college bill?
What happens if I don’t pay my tuition?
Graduation hold: You may be unable to complete your degree or receive your diploma. Current classes: If your tuition goes unpaid for an extended period, you may be dropped from your current classes. Campus housing: Similarly, you may lose your student housing and dining hall access if your bill is seriously overdue.
What happens if a student owes a late tuition bill?
Before collections come into play, schools can take immediate action on late tuition. They may impose late fees and put your student account on financial hold. From there, unpaid tuition bills can bring on an escalating range of consequences, including the following:
Is it hard to make college payments?
College costs seem easy to figure out when it’s all just talk, and you haven’t handed over any money yet, but when it comes down to making those tuition payments it may not always be easy. If you and your family are having a hard time making ends meet to keep you on track to graduation, here’s some advice for ways to can ease your financial burden.
What happens if I don’t pay my student loan?
Consequences of missed payments may vary among private lenders; review your loan contracts for specific details. Generally, here’s what can happen if you don’t pay private student loans: If your payment is late by at least one day, your loan becomes delinquent. You may start facing late fees, which vary by private lender.