Procedure GP2012 - Emergency Loans to International Students
Office of Global Programs
Policy Steward facilitating procedure: Vice Provost of Global Programs
Table of Contents:
- LOAN APPLICATION AND APPROVAL
- Application and Approval at University Park
- Application and Approval at Non-University Park Locations
- LOAN REPAYMENT
- Repayment at University Park
- Over the Counter Cash Payments
- Repayment at Non-University Park Locations
- Collection Procedures
- WRITING OFF DELINQUENT ACCOUNTS
- POSTING AND DEPOSITING PAYMENTS
- PROCESSING RETURNED CHECKS
- AUDIT COORDINATION - FINANCIAL AND PROCEDURAL
- RECORD RETENTION, DISPOSITION AND DESTRUCTION
- CONTACT INFORMATION
- CROSS REFERENCES
The International Student Emergency Loan Fund (INTRZ) and the Lagoven International Student Loan Fund (LAGNZ) have been established for registered international students who have an immediate need for financial assistance. These funds are available only to international students who are registered with Directorate of International Student Advising. The funds are recorded as part of the permanent trust funds in the Office of Student Loans and Scholarships at University Park.
Directorate of International Student Advising establishes the criteria used to approve or reject loans. Loans may be awarded any time during a semester/session up to and including the last day of classes. Students cannot be delinquent on any other loans with the University. Total loans may not exceed the total amount available in the source funds. Loans normally must be repaid within 90 days, but under exceptional circumstances the due date may be extended if authorized by Directorate of International Student Advising or the Office of Student Loans and Scholarships. Interest shall accrue and will be charged on loans only when overdue, and then at the current University established rate, approved by the Corporate Controller. All loans must be paid in full by graduation or termination of enrollment.
Loans awarded to University Park locations are recommended by the Campus Director of Student Affairs, approved by the Directorate of International Student Advising at University Park, and are disbursed by the Office of Student Loans and Scholarships at University Park.
Loans awarded at Non-University Park locations are recommended by the Campus Director of Student Affairs, approved by the Directorate of International Student Advising at University Park, and are disbursed by the Office of Student Loans and Scholarships at University Park.
Loans are tracked via ISIS for both University Park and Non-University Park locations.
Loan repayment must be made in U.S. funds. Foreign currency will not be accepted at any time.
Non-payment of a short-term loan will result in a "hold" on a student's academic record and ultimate submission of the debt to a collection agency if not arrangements are made. The fund will be replenished when these accounts are written off.
A student wishing to apply for an emergency loan must go the Directorate of International Student Advising to discuss his/her needs. The Director of Directorate of International Student Advising or International Student Advisor will, in the presence of the student, approve or reject the request based upon information received from the student; availability of fund; and status of the student's account. If rejects, no further processing takes place. If approved, the Director or an International Student Advisor will determine the amount and repayment date of the loan. Generally, international students who have defaulted previously will not be granted a loan.
The data is entered into the AFAT screen on ISIS ( Exhibit "A" ), and the student is directed to electronically sign the promissory note ( Exhibit "B" ). In exceptional cases a paper promissory note can be generated and signed by the student. The student must have two references other than his/her parents to complete the promissory note. All references must be U.S. references.
Once the student signs the notes, the Office of Loans and Scholarships will disburse the money into the student's account ( Exhibit "C" ) and issue a refund. The student will be instructed to sign up for direct deposit into his/her bank account. The student should go to eLion and submit information under "Refund Information" or go to the Bursar's web-page to obtain an ACH enrollment form. If the student is enrolled in ACH, the refund will reach the student's bank account in approximately 3 business days. In exceptional cases, the refund will be mailed to the permanent residence on record.
A student wishing to apply for an emergency loan must go to the Director of Student Affairs (or DISA liaison) at the campus to discuss his/her needs. The Director of Student Affairs (or his/her designee) will contact Directorate of International Student Advising. In consultation with the DISA Director or an International Student Advisor, the loan will be processed as described for University Park.
When aid funds are credited to the student account, the loan will be repaid by charging the student's account. When the loan is not based on future aid, the student will be billed by the Office of Student Loans and Scholarships as detailed under Collection Procedures below. The student must then make payment to the Office of Student Loans and Scholarship - UP.
Money orders, certified checks, or personal checks may be accepted for loan repayment. Checks for loan repayment must be made payable to The Pennsylvania State University and mailed to the Office of Loans and Scholarships (108 Shields Building, University Park, PA 16802) or taken in person to the Bursar's Office (103 Shields Building, University Park, PA 16802). Payments by the student can also be made online through the "My Loans" web-site. The payment will be deducted from the student's bank account.
All cash payments must be paid at the Bursar's Office. The payment is posted to the ABAS screen in ISIS and the Office of Student Loans and Scholarships is notified. The Office of Student Loans and Scholarships will then transfer the payment and post the payment to the student's emergency loan on the Student Loans and Scholarships loan system in ISIS .
When a loan is repaid in full with cash, the paper Promissory Note is stamped "paid" and returned to the student immediately. For eSignature Promissory Notes, the student will receive a paid-in-full notification, indicating that the Promissory Note was signed electronically. The student's account is then cleared, "L-flag" (loan) removed, and any related holds are released.
If the final payment is made with a personal check, an appropriate waiting period must pass to allow the check to clear. Following this time period, the Paper Promissory Note is stamped "paid", and returned to the student via first-class mail. If the Promissory Note was electronically signed, a paid-in-full notification will be sent to the student via first class mail. After the Promissory Note or paid-in-full notification is mailed, the account is cleared, the "L" flag (loan) removed, and any holds (caused by non-payment of this note) are released. If the note or notification is undeliverable for any reason, it is sent to Directorate of International Student Advising.
If the payment is accepted at a campus, the payment must be posted to the ABAS screen in ISIS. The Office of Student Loans and Scholarships must be contacted by phone at (814) 865-0461 or by clicking on "Contact Us" on the office web-site. The Office of Student Loans and Scholarships transfers the payment from the student account to the loan fund on the Student Loans and Scholarship's collection system.
A reminder is sent to the student at the local address 30 days prior to the due date. If the loan is not repaid by the 15th of the month following the due date, a billing statement ( Exhibit "D" ) will be sent to the student for the amount due. The statement informs the student to pay the account in full to avoid interest charges.
If the loan is not repaid by the 15th of the next month, interest will begin to accrue and a billing statement will be sent to the student for the amount due. The message will state if not paid within 30 days, the student will lose eligibility for future University loans and a hold will be placed on his/her transcript and registration. Monthly billing statements will be sent until the loan in 75 days past due.
If these notices are undeliverable to the student for any reason, they are sent to Directorate of International Student Advising. The Director of Directorate of International Student Advising will assist in locating the student to collect the outstanding loan.
If no response is received from the student when 75 days past due, holds are placed on the student's transcript/registration ( Exhibit "E" ) and a final notice will be sent ( Exhibit "F" ). The notice will state if payment arrangements are not made within 30 days, the account will be eligible for placement with a licensed collection agency.
Once the student leaves the University, the account will be eligible for placement with a licensed collection agency. The Student Loans and Scholarships Office will attempt to call the former student for payment arrangement. If payment arrangements are not made or if the former student cannot be contacted, the Office of Student Loans and Scholarships will place a hold on collections and request permission from Directorate of International Student Advising to place the account. If permission is received, the collection hold will be removed and the loan will automatically placed with a licensed collection agency via a secured ftp transmission.
Payments made to the collection agency include the agency's fee. The payments are forwarded to the Office of Student Loans and Scholarships, and are posted to the student's loan account via ISIS. The agency is then reimbursed for their collection fee. The student's account reflects the collection agency's fee paid by the student in additional to the loan payment.
If the collection agency fails to collect a payment on the account within 12 months, it will be returned to the Office of Student Loans and Scholarships. Another notice will be sent at that time. If no response is received within 14 days, the account will be placed with a second collection agency. If they fail to collect a payment on the account within 12 months, it will be returned to the Office of Student Loans and Scholarships. Another notice will be sent at that time. If no response is received within 14 days, the account will be placed with a third collection agency. If they fail to collect a payment on the account within 12 months, it will be written off.
If Directorate of International Student Advising decides not to have the account placed, no further collection activity will occur and the remaining balance is charged to the awarding department's budget/fund. Since holds will remain on the former student's transcripts and registration, he/she may eventually repay the loan if university services are needed.
Only after the third collection agency determines an account to be uncollectable, and notifies Student Loans and Scholarships to this effect, may the account be written off against the Student Aid Reserve Account. Delinquent accounts under $100.00 are not turned over to a collection agency, but are written off directly to the student Aid Reserve Account.
All write-offs must be recommended by the Collection Officer and approved by the Director of Student Loans and Scholarships. The entry for writing off delinquent or uncollectable accounts is:
- Debit: Student Aid Reserve Account $
- Credit: Loan Account - Principal (appropriate loan fund) $
Any interest that may have accumulated is disregarded at this time and is not included in the write-off.
Transcript and Registration "holds" remain on the student records indefinitely. If payments are received at any time after the accounts have been written-off, the entry described above is reversed. If paid-in-full, any existing holds are also released.
The purpose of writing-off uncollectable accounts is to replenish the loan fund (from the Student Aid Reserve Account), thus making the funds available to currently enrolled international students.
Loan payments (final and partial) are posted to the Student Loans and Scholarships loan system in batches.
All checks are stored in the office vault overnight. The following day, a printout reflecting the previous day's posting is generated. The totals on the printout must agree with the batch control totals from the respective ISIS input. Any discrepancies must be reconciled before a deposit can be prepared.
The daily printout is necessary because it shows the break-down of principal payments and interest payments.
If a repayment check is returned from the bank for any reason, refer to Procedure CR2002 - Processing Returned Checks available on GURU.
The Director of Loans and Scholarships is responsible for monthly reconciliations to the Central Accounting Records to ensure that the monthly fiscal reports reflect that income was properly credited per this procedures.
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.
- Exhibit A - AFAT Screen
- Exhibit B - Promissory Note
- Exhibit C - Student Account
- Exhibit D - Billing Statement
- Exhibit E - Transcript/Registration
- Exhibit F - Final Notice
For questions, additional detail, or to request changes to this procedure, please contact the Directorate of International Student Advising.
- Policy AD22 - Health Insurance Portability and Accountability Act
- Policy AD35 - University Archives and Records Management
- Procedure CR2002 - Processing Returned Checks
- Blue/White Shredding Program
Date Approved: 7/7/2011
Most recent changes:
- Revision 1 - 7/7/2011 - procedure retitled to reflect the change from "Office of International Studies" to "Office of Global Programs"
- Unnumbered revision - 3/6/1980 - Procedure CR2048 - Emergency Loans to International Students at Commonwealth Campuses and CR2011 - Emergency Loans to International Students were combined into a single procedure numbered IS2012.
- Original - 2/23/1984 (Originally entitled CR2011 - Emergency Loans to International Students)