Emergency Tuition Loan (ETL) Program UPPS No. 07.07.05
Issue No. 3
Effective Date: 4/30/2010
Review: November 1 E4Y
01. POLICY STATEMENT
01.01 This UPPS describes the policies and procedures for the administration of the Emergency Tuition Loan (ETL) program, in accordance with Section 56.051 of the Education Code which states: "Each institution of higher education may establish an emergency tuition loan program under which students are loaned money to pay tuition and fees."
02.01 The Rules and Regulations of the Board of Regents, The Texas State University System (Chapter VI, Section 4) specify eligibility criteria for ETLs.
02.02 Fall or Spring semesters – To qualify for an ETL, a student must enroll at least half-time in the fall or spring semester. Half-time is defined as a minimum of six semester credit hours for undergraduate or certificate program students and four semester credit hours for graduate students.
02.03 Summer terms – To qualify for an ETL, a student must enroll at least half-time in a summer term. Half-time is defined as a minimum of three semester credit hours for undergraduate or certificate program students during a six-week summer term (summer I or II) or mini-session. During a 7-12-week summer term, half-time is defined as six semester credit hours.
02.04 ETLs are awarded to eligible students on the basis of the order of the receipt of applications (Education Code, Section 56.052).
02.05 Grade Point Average (GPA) – Students must have a minimum cumulative Texas State GPA of at least a 2.0 (for all continuing students).
02.06 Financial Obligations – Students are not eligible to receive an ETL if they have any outstanding financial obligations, other than registration charges, with Texas State. Thus, students with financial holds on their records due to NSF checks, parking fines, installments, or other financial obligations must make payment to Texas State to clear the hold before receiving the ETL award.
02.07 Prior Loans – Defaults on previous ETLs, short-term, or educational loans with any institution may disqualify students from receiving any subsequent loans.
03. TERMS OF THE LOAN
03.01 Tuition and required fees – In accordance with Texas State University System Rules and Regulations and Education Code, §56.053 (a) (3). ETLs are for an amount not more than tuition and required fees for the courses in which the student is actually enrolling. They cannot be used to cover the cost of books, supplies, or room and board.
03.02 The ETL amount will not exceed the amount required for the student to register initially and pay the initial tuition installment payment. The university may allow additional ETLs for subsequent installment payments.
03.03 The university will credit proceeds from an ETL directly to a student’s account when it is awarded during a registration period.
03.04 Due Date – is based upon the term for which the funds are loaned:
a. Fall or Spring ETLs are due as follows:
1) Initial registration payment – not later than ninety days from the date funds are credited to the student's account.
2) Second installment payment – not later than forty-five days from the date the student's account receives the funds.
3) Third installment payment – not later than thirty days from the date the student's account receives funds.
b. Other terms (longer than three weeks in length) – ETLs are due not later than thirty days from the date the university disbursed the funds or credited them to the student's account.
c. If the student withdraws from the university before the due date, the total unpaid balance of the note plus interest becomes due and payable immediately.
03.05 Default – The loan defaults if the student does not pay off the loan amount plus interest on or before the due date, even though a repayment plan is established. The university will assess additional fees and place a hold on the student’s records.
03.06 Interest – 5% annual interest is charged on the outstanding balance of the loan until the loan and all past due interest and other penalties are paid in full.
03.07 Delinquent Fee – An additional fee equal to a minimum of 10% per year of the outstanding principal balance is charged on all delinquent accounts. The fee represents a portion of the cost of collecting accounts. The university assesses this fee even in the case of a deferred or extended ETL.
03.08 Promissory Note – Students must sign a promissory note (Attachment I). Failure to do so will cause the loan to be canceled.
03.09 Repayment – Recipients should make payments to Texas State Student Business Services.
03.10 Prepayment – The student may pay the ETL prior to the due date without penalty, with interest prorated at 5% annually, up through and including the payment date.
03.11 Texas State will automatically credit all funds available to the student, such as scholarships, other financial aid, or refunds (for withdrawals, drops, etc.) to the outstanding ETL balance. Available funds are first applied to installment balances due, then to ETL balances.
03.12 Collection Agency – Texas State will either refer loans not paid in full by the due date to an outside collection agency for collection, or it will serve as the collection agency. In either case, the outstanding debt will include collection costs, including attorney’s fees. These additional costs may comprise as much as 42.86% of the outstanding balance plus past-due interest and delinquency or collection fees.
03.13 After the university has referred a delinquent ETL to an outside collection agency, the student must make payments to the agency.
04. PROCEDURES REGARDING DEFERRED REPAYMENT
04.01 The university may allow a student who is financially unable to repay an ETL to defer repayment (Education Code, §56.055). Students who receive deferrals are not eligible for additional extensions. (Refer to Section 05 of this policy.)
04.02 To qualify for deferred repayment, students must prove that inability to repay the ETL on its due date would deprive them of an education. Under this section, "lack of financial ability" is defined as having an effective family contribution (EFC is the amount of assistance the student and his or her family are expected by the federal government to contribute toward the student’s education during and academic year) that would qualify them for a Pell Grant.
04.03 When qualifying for deferred repayment under this section, the student must make the deferred repayment on the earlier of the following dates:
a. the first day of the ninth month after the last month in which the borrower was enrolled at Texas State; or
b. the fifth anniversary of the date on which the loan was executed.
04.04 Students should request deferred repayments from the Student Business Services–Collections Office by completing an Emergency Tuition Loan (ETL) Program Request for Deferred Repayment or Extension of Due Date (Attachment II), no later than the loan’s due date.
04.05 The university will allow students who qualify under this section to register for classes.
04.06 Determination of Pell eligibility (per Section 04.02 of this policy) is the responsibility of the director of Financial Aid and Scholarships.
05. PROCEDURES FOR PAYMENT EXTENSIONS
05.01 Students who do not meet the qualifications for deferred repayment under Section 04 may qualify for a payment extension for the ETL. Students who receive an extension under this section are not eligible to subsequently qualify for deferred repayment under Section 04 of this policy.
05.02 The university makes ETL payment extensions only for extraordinary circumstances, such as a student or family member medical emergency, and may require written documentation of those circumstances.
05.03 Each extension may be for a period of time not to exceed ninety days.
05.04 Students must make extension requests under this section to the Student Business Services–Collections Office by completing the Emergency Tuition Loan (ETL) Program Request for Deferred Repayment or Extension of Due Date (attachment II).
05.05 Determination of a student's need for extended due dates under this section is the responsibility of the manager of Student Business Services-Collections Office.
06. PROCEDURES FOR OBTAINING AN ETL
06.01 The director of Financial Aid and Scholarships or a designee has the authority to make exceptions to this policy’s eligibility criteria.
06.02 It is the responsibility of the director of Student Business Services to assure that the total funds awarded for ETLs do not exceed the funds available.
06.03 Texas State will record the 5% interest revenue from ETLs, earned prior to the due date and on delinquent loans in the ETL fund.
06.04 Texas State will record the delinquent fee revenue from delinquent loans in the Designated Fund group (similar to other incidental fees).
07. REVIEWERS OF THIS UPPS
07.01 Reviewers of this UPPS include the following:
Director, November 1 E4Y
Financial Aid and Scholarships
Director, November 1 E4Y
Student Business Services
08. CERTIFICATION STATEMENT
This UPPS has been approved by the following individuals in their official capacities and represents Texas State policy and procedure from the date of this document until superseded.
Director of Financial Aid and Scholarships; senior reviewer of this UPPS
Associate Vice President for Enrollment Management and Marketing
Provost and Vice President for Academic Affairs