Procedure CR2080 - Senior Loan and Grant-in-Aid Fund
Policy Steward facilitating procedure:
Table of Contents:
- LOAN APPLICATION AND APPROVAL/ISSUE
- LOAN REPAYMENT
- SENIOR FUND GRANT-IN-AID
- SENIOR FUND GRANT/LOAN COMBINATIONS
- LOAN FUND BALANCE- RECONCILIATIONS
- LOAN COLLECTION
- PROCESSING RETURNED CHECKS
- AUDIT COORDINATION - FINANCIAL AND PROCEDURAL
- RECORD RETENTION, DISPOSITION AND DESTRUCTION
- CONTACT INFORMATION
- CROSS REFERENCES
The Senior Loan and Grant-In-Aid Fund (hereafter referred to as "Senior Fund") was established on April 15, 1971 by an initial presidential allotment of $10,000 for a fund to provide interest free loans and/or grants to assist senior undergraduates only. This fund is not widely publicized and works only on a direct referral basis. The offices advised of its existence are the Office of Student Aid and the Office of Loans and Scholarships. In certain unusual cases, an arrangement can be made whereby the student may receive a combination loan and grant-in-aid.
The maximum amount of each loan or grant shall not exceed that amount prescribed by University policy at the time the loan or grant is approved. The use of grants in these packages is strictly limited to very needy cases.
The purpose of the Senior Fund shall be to provide special financial assistance to graduating seniors, normally in their last semester of enrollment. This fund complements rather than supplements existing funds. Any reasonable incident which may arise and which is related to the future job/academic endeavors of the student or to his (her) normal termination of undergraduate study will be considered a bona fide reason for utilizing this fund. Unforeseen circumstances not allowing the student to meet tuition cost, extra expenses for equipment or courses required to qualify for graduation, graduate or professional school application fees, and interview trips, are some possible examples which the fund might reasonably be used. The expense need not necessarily meet standard "emergency" criteria.
The Senior Fund is administered jointly by the Office of Student Aid and the Office of Student Loans and Scholarships. The Office of Student Aid has responsibility for administering loans and grants and keeping the appropriate awarding records. Student Financial Services maintains the notes and collection records, prepares monthly and annual reports, and follows up on delinquencies. Funds are disbursed and refunded through the Bursar's Office.
A student wishing to apply for a loan from the Senior fund must go to the Office of Student Aid to discuss his/her need. If funds are available and the request is felt to be warranted, the Office of Student Aid will approve the loan and place the loan on the student system ( ISIS ). The Office of Student Aid must review the student's overall financial situation (federal loans, grants, and other University loans) to prevent the student from receiving more loan funds than he or she may actually need, or for which authorization has been granted. Once the loan is approved, the student can then proceed to sign the promissory note for the loan.
From a computer with INTERNET access, the student must go to the e-Signature web site to electronically sign the promissory note. The student must have two references other than their parents to complete the promissory note.
Once the promissory note has been signed, Student Financial Services will disburse the loan amount to the student's account. All loan disbursements will be applied against current outstanding charges. If no outstanding charges exist, the disbursed loan proceeds will be refunded to the student via their refund preference.
Automated Clearing House (ACH) is the recommended method for refunding a credit balance in the student account. A student can enroll for ACH online through eLion under the "Refund Information" link.
If the student is enrolled in ACH, the refund will reach the student's bank account in approximately (3) banking days. If a student is not enrolled in ACH, a check will be produced and mailed to the address selected on ISIS (screen ABRT). Students must select a refund address if not enrolled in ACH in order for a refund to be issued.
It is the student's responsibility to repay loans awarded from this fund. Full repayment of loans granted from this fund will be made according to University Policy in effect at the time the loan is granted.
Repayment to the Senior Fund must occur within a period of 1 year from the date of graduation. During this period, the loan is interest free. However, in the case of delinquency, the student shall be liable to pay interest according to the interest rate charged for university loans that is in effect at the time the loan is signed.
Upon receipt of payment, Student Financial Services will post the payment to the student's loan record. Payments will be credited back to the Senior fund's available balance to be used for future loan approvals.
Under extenuating circumstances, grants and grant/loan combinations can be administered from the Senior Fund. Determination of whether a Senior Fund Grant-In-Aid is warranted will be made by a Student Aid representative based on the student's situation. If an outright grant is deemed appropriate by the Office of Student Aid, the award will be placed on the system. The grant will initially be recorded as a loan, but will then be reclassified as a grant by the Office of Loans and Scholarships.
At the end of the fiscal year, a transfer will be made for all Senior Fund loans that were awarded as grants for the prior year. A journal voucher will be prepared to debit the Senior Fund Loan account (Budget 09-064- 76, Fund 1931) and credit the Senior Loan and Grant Fund (Budget 09- 050-64, Fund 1920). The student's account will be changed to reflect the switch from a loan to a grant.
Grant-In-Aid approvals will be disbursed by the Bursar's Office. The conditions governing the issuance of a University refund after disbursement has taken place are the same as for Senior Fund Loans.
A Senior Fund Grant/Loan combination is processed in two parts. One amount is treated as a normal Senior Fund Loan and the other as a Grant-In-Aid. The amount of a grant/loan combination will be determined by the Office of Student Aid and shall not exceed the amount prescribed by University policy at the time the loan/grant is approved. The loan portion is processed through the Senior Fund Loan procedure and the grant portion through the Senior Fund Grant Procedure, as described above.
Disbursement and refunding of Senior Fund Grant/Loan combinations will be processed the same manner as described above.
The Senior Loan fund balance is compiled monthly by factoring in all payments/disbursements made to/from the fund. The net amount of payments and disbursements for the month is then added/subtracted to last month's available balance to obtain the current month's available balance.
At the end of the fiscal year, a transfer is made for all Senior Fund loans that were awarded as grants for the prior year. A journal voucher will be prepared to debit the Senior Fund Loan account (Budget 09-064-76, Fund 1931) and credit the Senior Loan and Grant Fund (Budget 09-050-64, Fund 1920). Once funds are transferred from the loan account to be used as grants, they are gone forever due to them not being repaid by the student.
If a student's loan is overdue, the Office of the Bursar is notified before each registration by Student Financial Services. Future registrations and records are "held" until the loan has been repaid. If a student has other overdue loans which have been turned over to an outside agency for collection, then the overdue Senior Fund Loan is added to the amount the agency is attempting to collect from the student. After a two-to-four year period Student Financial Services writes-off loans determined to be uncollectible, but the"holds' on the students' registration and records continue. Loan write-offs are made against the Bad Debt Reserve Account with a Journal Voucher.
The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area, as well as performing an annual audit that is submitted to the Assistant Controller.
Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management , and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.
- Documents subject to a Legal Hold (see AD35, Legal Hold). A legal hold will remain in effect until it is released in writing by the Office of General Counsel.
- Documents under audit or review, either internally or externally. The retention period extends until released by the Corporate Controller's Office. The Financial Officer will be notified regarding any accounts which are under audit; the Financial Officer will be responsible for contacting the department.
Additional questions may be directed to the University Archivist or the Records Management Officer.
For questions, additional detail, or to request changes to this procedure, please contact Student Financial Services
- Policy AD22 - Health Insurance Portability and Accountability Act
- Policy AD35 - University Archives and Records Management
- Procedure CR2002 - Proccessing Returned Checks
- Blue/White Shredding Program
Date Approved: 06/30/05
Most recent changes:
- Rev. 1 (CR2080), dated 04/15/05
- Original (SA2012), dated 06/04/81