PURPOSE OF THIS POLICY
To outline the policies of lending, accounting and collection of moneys of the short term Student Success Loan Fund to help meet temporary emergency financial needs related to educational expenses.
APPLICATION OF THIS POLICY
This policy applies to current students.
The office of Controller makes funds available for short-term non-interest bearing loans to assist students with temporary cash flow problems. Funds are generally made available within a working day, only to students who are currently attending the university and meet the following eligibility criteria:
- Must have verifiable repayment source;
- Must have no flags on the student account or credit holds.
Loans are intended solely for those financial need, other than institutional expenses, which threaten continuation of the students’ enrollment at the university.
Students must be enrolled for at least 6 credit hours and maintain a GPA of 2.0 or higher. Students who are enrolled in a course but not earning credits are not eligible for short-term loans. Disenrollment will cause the loan to enter repayment immediately. The success loan applicant cannot be a regular full or part-time faculty or staff members earning benefits. However, student employees and work-study students are eligible.
No interest is to be charged on the student success loan, but a service charge of no more that 5% of the amount or $25 whichever is lower will be added to the repayment amount for each loan. The service fee maybe waived in the case of student seeking a loan due to an error in student payroll or a delayed reporting of time by the employing department.
The maximum amount & cost of borrowing per semester includes:
- $ 500.00 for Undergraduate students
- $ 500.00 for Graduate/Professional students
In cases where a larger amount is necessary, the Controller has the discretion to loan up to $1000. If amount is greater than $1000 than Controller and Vice President of Finance & Administration must approve the loan. The amount of Student success loan is capped at $2000.
Repayment is due by the first day of the next semester, or whenever additional funds such as financial aid arrive on account, whichever comes first.
Students normally may have only one short term loan outstanding at any one time. If payment is not made when due under terms of the original note, the indebtedness is treated as an overdue to the university account and subject to standard Colorado State University-Pueblo (CSU-Pueblo) late payment penalties. CSU-Pueblo can place holds on the registration/transcripts, which would prevent the student from registering or adding/dropping and from getting a copy of the transcript or applying to a major. Late fee must begin to accrue until the loan is paid in full. If delinquent, this loan must be treated as an overdue student account and handled in accordance with the university policy, including assignment to the State of Colorado.
Student Success Loan Fund should be maintained at a balance of $5000.00. The fund should be counted randomly and at least monthly. The student loans are recorded in accounting system and retained for audit. All cash and loan applications that have not been processed should be secured in a locked safe or locked cabinet.
The Business Financial Services office is responsible for administering the fund.
Colorado State University-Pueblo
By: Dr. Timothy Mottet
Date January 15, 2018