529 Plans often impose long hold periods (up to 15 days) for new account links, which may not align with your tuition payment deadlines. If you need to make a payment before the hold period is over and your Backpack account is fully linked, here are some alternative options to ensure your tuition is paid on time.
Once your Backpack account is fully verified and linked to your 529 plan, future payments will be faster and more seamless. For now, these temporary solutions will help ensure your tuition is paid on time.
1. Withdraw 529 Funds to Your Personal Bank Account
If your 529 plan has an existing bank account on file, you can withdraw funds directly to it. This is often the case for 529 Account owners who have made contributions to their 529 from their personal bank account.
Cost:
Free
How to access your 529 funds for payment:
Log in to your 529 plan’s portal.
Make a withdrawal to the personal bank account already linked to your 529 plan. This is usually the same account you’ve used to make contributions to your 529 plan in the past.
Note: If there are sufficient funds in your personal bank account to cover your tuition payment, you can complete this step later.
Funds can take up to 4 days before they are deposited into your bank account.
How to complete your tuition payment now:
Complete your tuition payment using this secure payment link to pay by bank: https://app.backpack529.com/direct-debit/personal
You’ll be asked to login to your Backpack account for security purposes before being redirected to the payment link.
Enter your personal bank account and routing numbers.
Note: A debit from your bank account for the tuition amount will be initiated immediately. Please ensure you have sufficient funds in your bank account to cover the payment.
If you have any questions at all about this process, please contact our support team (you can use the blue chat bubble in the bottom right corner).
2. Request an Expedited Check from Your 529 Provider
Some 529 providers allow for checks to be sent directly to the university or a third party. There is usually a fee associated with an expedited delivery, which can range from $10 - $35. This option can be faster than waiting for the hold period on a new account link.
Cost:
Expedited delivery can range from $10 - $35
How to Use This Option:
Log in to your 529 plan’s portal.
Select the option to send a check payment.
When asked for an address, enter the details for your University.
Note: Most universities provide a specific mailing address for checks. Be sure to check your university's website for more details.
3. Apply for Temporary Tuition Credit
If you're awaiting the verification and linking of your 529 plan to your Backpack account and have an upcoming tuition deadline, you can apply for a Temporary Tuition Credit. This service ensures your tuition is paid on time while your 529 funds are being processed.
Cost:
Free (if repaid within 30 days)
How to Use This Option:
Contact Backpack Support:
Reach out to our support team through the blue chat bubble in the bottom right corner or by emailing support@backpack529.com
Inform the support representative of your situation and request a Temporary Tuition Credit.
Provide Necessary Documentation:
Be prepared to provide:
Proof of your 529 plan ownership (e.g. account statement) and evidence that you have linked your Backpack account.
Any additional information required by the support team.
Approval and Payment:
Once approved, Backpack will advance the tuition amount directly to your educational institution, ensuring timely payment. Once all required documentation has been supplied, approvals are processed in under 24 hours.
Reimbursement:
After your 529 plan is linked and funds are available, Backpack will coordinate the reimbursement of the advanced amount.
Important Notes:
Ensure you initiate the 529 linking process as early as possible to minimize delays.
This service is designed for new Backpack account owners only who are making their first tuition payment. We know how painful the lengthy verification period imposed by 529 Plans can be and we are here to help.
What Happens Next?
Once your Backpack account is fully verified and linked to your 529 plan, future payments will be faster and more seamless. For now, these temporary solutions will help ensure your tuition is paid on time.
If you need further help or have questions, don’t hesitate to contact support.