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Student Financial Aid Policies

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

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. Students must maintain a 2.0 (A = 4.0) or higher, and be making Satisfactory Academic Progress as defined by the policies of the Office of Student Financial Aid (OSFA). Students are restricted to a maximum of three short-term loans per academic term. Students employed full-time by SIUE in faculty, staff, or civil service positions are ineligible.

Applicants must not be on accounts receivable or owe the University for a prior short-term loan. Students who are in default on a Federal Direct Student 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, if citing financial aid as a repayment resource. An exception may be made if extreme emergency circumstances (documented by the financial aid advisor) 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.

Each applicant must also document the nature of the unexpected need 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 $600. Requests of over $600 will be reviewed by the Short-Term Loan Committee. Loans are made for up to 30 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 Office of Student Financial Aid Director ora designated representative. Exceptions to the policy may be granted by the Director of OSFA 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 OSFA. 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 OSFA 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 30 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 OSFA personnel and given to the student for redemption at the Office of the Bursar. A copy of the note is retained by OSFA 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 6/20/19
This policy was issued on July 11, 2019, replacing the January 2, 1997 version.
Document Reference: 4A6
Origin: OP 12/2/83; OP 4/10/91; OP 2/21/92; OC 6/20/19

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