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Student Financial Aid Policies

Policy on Short-Term Student Loans, SIUE [ Financial Assistance ] - 4A6

Short-term loan funds have been provided by individuals and groups who wish to assist SIUE students. Short-term loans are available, as funds permit, to aid students with emergency needs or unexpected expenses related to educational costs. Loans are not available for tuition and/or fee payment.

Applicants must be enrolled at least half-time, with current term tuition/fee charges paid or deferred. They must have completed one term's work at SIUE, have at least a 2.0 (A = 4.0) overall GPA, and be making satisfactory academic progress as defined by the policies of the Office of Student Financial Aid (SFA). Students employed full-time by SIUE in faculty, staff, or civil service positions are ineligible.

Applicants must not be on accounts receivable, unless the receivables are for current monthly housing charges, nor owe the University for a prior short-term loan. Students who are in default on a Guaranteed Student Loan, National Direct Student Loan, or SIUE Long-Term loan are not eligible. Denial criteria may also include delinquent repayment on a prior short-term loan or charges by SIUE for a bank-returned check.

Applicants must demonstrate adequate resources for loan repayment; i.e., the proceeds of financial aid authorized by SFA and scheduled for disbursement. If all financial aid (or a sizeable portion thereof) has already been disbursed, a short-term loan will generally not be approved. An exception may be made if extreme emergency circumstances (documented by the counselor) have occurred. Students whose paychecks are not available due to errors or delays are also eligible for short-term loans.

Loan repayment will be deducted from any financial aid due the borrower on the date of such financial aid disbursement. If the student's only form of financial aid is institutional student employment, the proceeds of the student's paycheck (or a portion thereof) will be used to repay the loan. Students anticipating VA benefits must have their loan applications verified by the VA certifying official at SIUE.

Each applicant must also document the nature of his/her emergency with the submission of unpaid bills, paid receipts, or service estimates. Loan amounts may vary based on this documentation and will generally be from $50 to $150. Loans are made for up to 60 days or until the end of the term, whichever occurs first.

An origination fee will be assessed according to the following ranges: $1.00 for loans up to $50.00, $2.00 for loans up to $100.00, and $3.00 for any loan in excess of $100.00. The origination fee must be paid when the loan is disbursed or may be deducted from the loan proceeds. The origination fee may be waived in the case of a student seeking a loan due to an error in student payroll or a delayed reporting of time by the employing department.

The promissory note will contain language to allow SIUE to collect the costs of litigation incurred in collection of short-term loans in default.

Appeals and/or exceptions to this policy may be made to the Director of Student Financial Aid or to his designated representative. Exceptions to the policy may be granted by the Director of SFA if exceptional circumstances exist and are fully documented in writing.

Procedures

The student must complete an application for a short-term loan and submit it to the SFA Office. Applications are reviewed for the eligibility criteria described above and screened for accounts receivable. Approved applications are processed for loan disbursement.

A promissory note is prepared by SFA which specifies the date, loan amount, due date, and loan fund. The date of repayment ("due date") is determined by the disbursement date of any other funds due the borrower, payable through or distributed by SIUE, or the date specified on the promissory note, whichever is earlier. Loans are repayable within 60 days or before the end of the term, whichever occurs first.

The note is signed by the applicant after verification of enrollment. The loan note is then signed by authorized SFA personnel and given to the student for redemption at the Bursar's Office. A copy of the note is retained by SFA for attachment to the loan application.

The loan advance is placed immediately on the University's accounts receivable system. All financial aid checks, including student payroll checks, can then be compared to the A/R system for loan repayment. Any loan not paid by or on the due date will be considered delinquent. Such action will result in the student's being unable to receive future loans, complete registration or deferment procedures for subsequent terms, and/or obtain transcripts.

Approved by Chancellor effective 2/21/92
This policy was issued on January 2, 1997, replacing the February 1, 1996 version.
Document Reference: 4A6
Origin: OP 12/2/83; OP 4/10/91; OP 2/21/92

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