Emergency Tuition Loan Program (ETLP) UPPS No.
07.07.05
Issue No. 2
Effective Date: 4/20/2005
Review: November 1 E4Y
01. POLICY STATEMENT
01.01 This UPPS describes the policies and procedures for the administration of the Emergency Tuition Loan Program (ETLP), 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. QUALIFICATIONS
02.01 The Rules and Regulations of the Board of Regents, Texas State University System (Chapter VI, Section 4) specify eligibility criteria for ETLP loans.
02.02 Fall or
Spring semesters - To qualify for an ETLP loan, generally, a student must be
enrolled at least half-time in the fall or spring semester. One-half time is
defined as a minimum of 6 semester credit hours for undergraduate students and
5 semester credit hours for a graduate or post-graduate student.
02.03 Summer
terms - To qualify for an ETLP loan, generally, a student must be enrolled at
least halftime in a summer term. One-half time is defined as a minimum of 3
semester credit hours during a 6-week summer term (Summer I or II). During a
12-week summer term, halftime is defined as 6 semester credit hours.
02.04 Other
terms - ETLP loans are not available for terms shorter than the standard Summer
I or II terms (generally 5-6 weeks in length).
02.05 ETLP
Loans are awarded to eligible students on the basis of the order of the receipt
of applications. (Education Code, Section 56.052)
02.06 Grade
Point Average - Students must have a minimum cumulative GPA at Texas State of
at least 2.0 (for continuing students).
02.07 Financial Obligations - Students are not eligible to receive an ETLP if they have any outstanding financial obligations 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 being awarded an ETLP loan.
02.08 Prior Loans
- Defaults on previous ETLP, 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 - ETLP loans are for an amount not more than tuition and required fees for the courses in which the student is actually enrolling. In accordance with Texas State University System Rules and Regulations and Education Code, Section 56.053 (a) (3).
03.02 The
amount of an ETLP loan will not exceed the funds required for the student to
register initially and enroll in accordance with Education Code, Section
54.007, Option to Pay Tuition by Installments. Additional ETLP's may be
available for subsequent installment payments.
03.03 The
University will credit proceeds from an ETLP loan 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 - ETLP loans are due as follows:
1) Initial
registration payment - not later than 90 days from the date funds are credited
to the student's account.
2) 2nd
installment payment -not later than 45 days from the date funds are credited to
the student's account.
3) 3rd
installment payment - not later than 30 days from the date funds are credited
to the student's account.
b. Other terms
(longer than 3 weeks in length) - ETLP loans are due not later than 30 days
from the date funds are disbursed or credited to the student's account.
03.05 Default -The loan is in default and becomes a non-performing loan if the loan amount plus interest is not paid on or before the due date. Even though a repayment plan is established, the loan is regarded as being in default and additional fees are assessed. Financial holds will be placed on a student's records for defaulted loans.
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
Collection Fee - An additional fee equal to a minimum of 10% per year of the
outstanding balance (loan amount plus interest) is charged on all delinquent
accounts. The fee represents a portion of the cost of collecting delinquent
accounts. This fee is assessed even if the loan has been deferred or extended.
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 the Texas State Cashier’s Office.
03.10 Prepayment - Loans may be paid prior to the due date, without penalty. Interest will be prorated at a 5% annual rate, up through and including the date of payment.
03.11 All funds,
such as scholarships, other financial aid, or refunds (for withdrawals, drops
and so forth) that become available to the student will be automatically
credited by Texas State against the outstanding balance due for ETLP loans.
Available funds are first applied to installment balances due, then to ETLP
loan balances.
03.12 Collection
Agency - Loans that are not paid in full by the due date may be referred to an
outside vendor (collection agency) for collection, or the University may serve
as the collection agency. In either case, the costs of collection (including
attorneys' fees) will be added to the outstanding debt. These additional costs
may be as much as 33 1/3% of the outstanding balance plus past-due interest and
delinquent/ collection fee.
03.13 After a
delinquent loan has been referred to an outside collection agency, the student
must make payments to that agency.
04. PROCEDURES REGARDING DEFERRED REPAYMENT
04.01 Students
who are unable to repay an ETLP in full by the due date, because of a lack of
financial ability, may be eligible to defer the repayment. (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, the student must prove that they would be
deprived of an education due to a lack of financial ability on the due date of
the ETLP loan. Under this section, "lack of financial ability" is
defined as having an effective family contribution that would qualify them for
a Pell Grant.
04.03 If a
student qualifies for deferred repayment under this section, the deferred
repayment must be made 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 Collections Office by completing a
written request (Attachment
II). Such requests must be made not later than the due date of the loan.
04.05 Students
who qualify under this section will be allowed 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.
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 ETLP. 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 Payment
extensions for an ETLP loan may be made only for extraordinary circumstances
(such as a medical emergency of the student or a family member). Written
documentation may be required to substantiate the extraordinary circumstances.
05.03 Each
extension may be for a period of time not to exceed 90 days.
05.04 Requests
for extensions under this section must be made to the Collections Office, by
completing a written request (Attachment
II).
05.05 Determination
of a student's need for extended due dates under this section is the
responsibility of the Manager of Collections.
06. PROCEDURES FOR OBTAINING AN ETLP
06.01 Upon receipt of an ETLP application, the Office of Student Financial Aid will ascertain eligibility. The Director of Financial Aid (or his/her designee) has the authority to make exceptions to the eligibility criteria under this policy.
06.02 It is the
responsibility of the Director of Financial Aid to assure that the total funds awarded
for ETLP loans do not exceed the funds available.
06.03 Texas
State will record the 5% interest revenue from ETLP loans, earned prior to the
due date and on delinquent loans in the ETLP loan 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:
Position Date
Ms. Mariko Gomez, Director November 1 E4Y
Student Financial Aid
Ms. Pam Gulley, Director November 1 E4Y
Accounting
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.
Ms.
Mariko Gomez, Director of Financial Aid; senior reviewer of this UPPS
Dr.
James Studer, Associate Vice President for Enrollment Management
Dr.
Perry Moore, Provost and Vice President for Academic Affairs
Dr.
Denise M. Trauth, President