Emergency Student Loan Program

 

 

Purpose:

 

To establish an emergency student loan program for tuition and fees

 

Date Approved:

 

June 13, 1985 (Editorially amended July 2001)

 

Background:

 

The U. T. Board of Regents authorized each U. T. System component institution to establish an emergency loan program from funds set aside from each student's tuition.  Under this program, students are loaned money to pay tuition and fees.  Further, the Board adopted the following rules establishing eligibility criteria and terms for this emergency loan program.

 

 

Emergency Student Loan Program
for Tuition and Fees

 

 

Eligibility Rules for Emergency Loan Program

 

1.      To be eligible for emergency loans a student must have been accepted for enrollment and be enrolled on at least a half-time basis at the institution.

 

2.      To be eligible for the emergency loan program a student must face an emergency situation and must not have received from the Financial Aid Office loan or grant funds to pay tuition and fees for the current semester.

 

3.      Loans to eligible students shall be granted on the basis of the order in which the institution receives applications.

 

Terms for Emergency Loan Program

 

1.      By the terms of Section 56.053, Texas Education Code, as long as funds are available in the emergency loan program, an eligible student must be allowed to receive a loan in an amount equal to tuition and required fees for the courses in which the student is enrolling.

 

2.      The maximum loan amount per student may not exceed charges for tuition, mandatory fees, and optional fees for the courses in which the student is enrolling, unless the institution determines that a lower amount would be in the best interest of the student.

 

3.      The loan must be evidenced by a promissory note containing terms approved by the U. T. System Office of General Counsel and bearing interest at a rate of not less than 3% or more than 5% per year.

 

4.      The loan must be repaid within ninety days or five days before the last class day of the semester in which the student is enrolled, whichever period is shorter.  Students enrolled in programs not on a semester basis must repay the loan prior to 30 days before the last class day of the annual academic term in which the loan is made.

 

 

Last reviewed July 2001