Overview
- PayPal said on August 19, 2026 that students and families can now use PayPal and Venmo to pay tuition and fees at participating U.S. universities, with the feature already live at schools including Michigan State University and Bellarmine University.
- The service runs through three education payment processors—Illumia, Nelnet Campus Commerce, and TouchNet—so students use their existing school payment portals and pick PayPal or Venmo at checkout.
- Nelnet and TouchNet framed the move as reducing friction for students, with Nelnet’s Jackie Strohbehn saying the option gives families more flexibility for a major financial decision.
- PayPal and Venmo’s inclusion is a strategic push to shift Venmo from small peer-to-peer transfers to predictable, high-value campus payments and to keep younger users inside the apps.
- Broader rollout depends on each processor enabling the option for their client schools, and the change affects payment flow and convenience rather than tuition cost, with processors handling compliance, financial-aid coordination, and refunds.