Emergency Loan Program (ELP) UPPS
Issue No. 4
Effective Date: 06/08/2015
Review: November 1 E4Y
Sr. Reviewer: Treasurer
01. POLICY STATEMENT
01.01 This policy describes the procedures for the administration of the Emergency Loan Program (ELP), in accordance with Section 56.051 of the Texas Education Code which states: "Each institution of higher education may establish an emergency loan program under which students are loaned money to pay tuition, fees, and the cost of textbooks."
02.01 Chapter VI, Section 4 of The Texas State University System Rules and Regulations of the Board of Regents specifies eligibility criteria for ELPs.
02.02 Applicants for an emergency loan must be enrolled in courses for which the loan is intended. Applications are submitted electronically at the following link: Emergency Loan Application.
02.03 ELPs are awarded to eligible students on the basis of the order of the receipt of applications and availability of funds (see, Texas Education Code, Section 56.052).
02.04 Grade Point Average (GPA) – Students must have a minimum GPA of at least a 2.0 (for all continuing students).
02.05 Financial Obligations – Students are not eligible to receive an ELP if they have any outstanding financial obligations. Students with financial holds on their records due to returned bank payments, parking fines, installments, or other financial obligations must make payment to Texas State to clear the hold before receiving the ELP award.
02.06 Sufficient Funds – Students are not eligible to receive an ELP if they have sufficient funds from other sources such as financial aid, tuition adjustments or any other funds to meet the minimum required down payment for a payment plan. Loans will be denied if funds are available and applied to the student’s account.
03. TERMS OF THE LOAN
03.01 Loan amounts should not exceed the total of tuition and course-related fees for which the student is enrolled.
03.02 The university will credit funds from an ELP directly to a student’s account. Applications are accepted three to five days prior to the scheduled due date for each registration period. This date is dependent upon the disbursement of financial aid funds to assure that all available funds are applied to the student’s account. Loans for subsequent installment payments are not available.
03.03 Due Date – is based upon the term for which the funds are loaned:
a. ELPs are due no more than 90 days after the date of disbursement.
b. If the student withdraws from the university before the due date, the total unpaid balance of the loan plus the origination fee becomes due and payable immediately.
03.04 Default – The loan defaults if the student does not pay off the loan amount 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.
03.05 Origination Fee – A 1.25 percent origination fee based on the amount lent will be added to the student’s account at the time loan is disbursed. No additional interest is charged.
03.06 Delinquent Fee – If loans are not paid in full by the established due date, an additional $25 fee will be added per month for a period not to exceed six months.
03.07 Promissory Note – Students must electronically sign a promissory note. Failure to do so will cause the loan to be canceled.
03.08 Repayment – Recipients should make payments to Texas State Student Business Services either online or by mail. Cash payments will only be accepted at the Student Business Services – Cashier Operations Office.
03.09 Prepayment – The student may pay the ELP prior to the due date without penalty.
03.10 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 ELP balance. Available funds are first applied to tuition and fee balances due, then to ELP balances.
03.11 Collection Agency – Texas State reserves the right to refer any defaulted loan to an outside agency for collection. The outstanding debt will include the outstanding balance of the loan, loan fees, agency collection fee, and attorney’s fees. These additional fees shall not exceed the amount allowable by the State of Texas.
03.12 After the university has referred a delinquent ELP 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 ELP to defer repayment (see Texas Education Code, Section 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 ELP on its due date would deprive them of an education. Under this section, "lack of financial ability" is defined as having an expected 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 an 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 must make deferral requests under this section to the Student Business Services – Collections Office by completing the Emergency Loan Program Request for Deferred Repayment or Extension of Due Date. Complete applications must be received prior to the loan due date. Late charges continue to apply.
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) 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 ELP. Students who receive an extension under this section are not eligible to subsequently qualify for deferred repayment under Section 04.
05.02 The university makes ELP 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 90 days.
05.04 Students must make extension requests under this section to the Student Business Services – Collections Office by completing the Emergency Loan Program Request for Deferred Repayment or Extension of Due Date. Complete applications must be received on or before loan due date. Late charges continue to apply.
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 LOAN FORGIVENESS
06.01 A student who has been certified by a physician as being physically or mentally incapable of employment, resulting in a financial hardship that would make repayment infeasible, may request loan forgiveness.
06.02 Documentation of a financial hardship condition must indicate that the condition is expected to continue and would likely make repayment infeasible for the succeeding five years.
06.03 Students can request Emergency Loan Program Request for Forgiveness form by contacting Student Business Services – Collections Office.
07. FISCAL INFORMATION
07.01 The director of Student Business Services, or a designee, has the authority to make exceptions to this policy’s eligibility criteria.
07.02 It is the responsibility of the director of Student Business Services to assure that the total funds awarded for ELPs do not exceed the funds available.
07.03 Texas State will record the 1.25 percent origination fee from ELPs earned prior to the due date and on delinquent loans in the ELP fund.
07.04 Texas State will record the delinquent fee revenue from delinquent loans in the Designated Fund group (similar to other incidental fees).
08. REVIEWERS OF THIS UPPS
08.01 Reviewers of this UPPS include the following:
Treasurer November 1 E4Y
Director, Student Business Services November 1 E4Y
09. 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.
Treasurer; senior reviewer of this UPPS
Vice President for Finance and Support Services